Bonus shares are the rewards given to the company's shareholders at no additional costs in a pre-specified ratio. In bonus share issuance, cash lying in free reserve and surplus is moved to the company's capital and this additional capital is then deployed to issue additional shares. The new shares are issued at the existing face value of equity shares of the company.
Here are given 2 companies that announced bonus share issuance today:
Indian Oil Corporation:
The oil marketing company in its board meet today for quarterly results, bonus shares announced bonus shares issuance in the ratio of 1:2 i.e. for every 2 shares held investors will get 1 bonus share.
In the filing the company with respect to the bonus shares said, the Board has recommended issue of Bonus Shares in the ratio of 1:2 i.e. One new bonus equity
share of Rs. 10/- each for every Two existing equity shares of Rs . 10/- each fully paid up subject to the
approval of shareholders through postal ballot. The Board has fixed 1st July 2022 as record date to
determine the eligibility of shareholders to receive bonus shares.
The company is said to posts the highest revenue by any Indian company.
2. Jyoti Resins:
India-based manufacturer of synthetic resin adhesives, Jyoti Resin manufactures various types of wood working adhesives. The company's board today recommended issue of Bonus Equity Shares in proportion of 2:1 i.e. 2 (Two) new fully paid-up Equity Share of Rs.10/- (Rupees Ten only) each for every 1 (One) fully paid-up Equity Shares of Rs.10/- (Rupees Ten only) each held by the eligible members of the Company as on the ''Record Date'', subject to the shareholders'' approval.
Motillal Oswal Financial Services:
The financial broking concern with good standing has announced Buyback of fully paid up Equity Shares of face value of Re 1/- each not exceeding 14.55 lakh Equity Shares (representing 0.98% of the total paid-up equity share capital of the Company as on March 31, 2022) at a price of Rs 1,100 per Equity Share for an aggregate amount not exceeding Rs 160 crores (excluding tax and other buyback related expenses).
The company has decided to use "Tender Offer" route for acquisition of shares. Members of the promoter and promoter group of the Company have indicated their intention to participate in the proposed buyback.
The Company has fixed May 27, 2022, as the Record Date for the purpose of determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the aforesaid Buyback.
Considering the current share price of Rs. 851, the company will be offering a premium of over 29%.