3:1 Bonus Issue Today: Apparels Penny Stock Turns Ex-Bonus On April 7: How To Be Eligible For 3 Free Shares?

One penny stock is set to turn ex-bonus on Tuesday, April 7, 2026. There are no ex-dividends or ex-splits today. Coming to the bonus, this penny stock is engaged in apparel and textile businesses, will reward eligible shareholders with 3 free shares against 1 existing equity share. Hence, the bonus ratio is 3:1. This stock is Avax Apparels and Ornaments Ltd.

Bonus Issue Today:

Avax Apparels and Ornaments Ltd Bonus Issue:

Avax Apparels has announced bonus issue of 3:1 ratio, which means, 3 bonus equity share of face value of Rs 5 each to eligible investors against their every 1 existing equity share. To identify eligible investors, the company fixed April 7 as the record date. Also, the stock will turn ex-bonus on the same day.

How To Be Eligible? You can only be eligible if you are holding the stock in your demat accounts before the end of the record date and your name is mentioned in the books of records. If you buy the stock on April 8, you will not be eligible for this reward.

Avax Apparels and Ornaments Ltd Share Price:

Before the ex-date, Avax Apparels stock froze at its 5% lower circuit on April 6th to Rs 159.60 apiece. Its current market cap is of Rs 33.17 crore.

Prior to Monday, the stock had touched a new 52-week high of Rs 168 apiece last week on Friday.

About Avax Apparels and Ornaments Ltd:

The company is engaged in trading of clothes in different segments which is fabric, woolen, yarn, garments and knitted clothes. Further, it provides online Ladies Apparels and Imitation jewellery with the help of company vendors through its e-commerce marketplace.

Advantages of Bonus Issue:

According to Nirmal Bang, here are the benefits of bonus issue:

From Investor's Point of View:

1) Investors do not have to pay any tax while receiving bonus shares from the company.

2) Bonus shares are considered beneficial for long-term shareholders of the company looking to multiply their investment.

3) Bonus shares are free of cost to shareholders as they are issued by the company, which increases the outstanding shares of an investor in the company and enhances the liquidity of the stock.

4) Bonus shares help build the trust of an investor in the company's business and operations because they have invested in the company and, in turn, gives capital to the investor.

From Company's Point of View:

1) The issue of bonus shares enhances the company's value and increases positions and image in the market, gaining the trust of existing shareholders and attracting several small investors to be a part of the stock market.

2) The companies have more free-floating shares with the issue of bonus shares in the market.

3) Issue of Bonus shares benefits companies to get themselves out of the situation where they are not able to or simply not prefer to pay cash dividends to their shareholders.

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