August Bonus Issue: 3 Stocks Approve And Recommend Bonus Share

1. Ruby Mills Ltd

Built on the solid foundation of technical expertise, impeccable product quality, and non-negotiable business ethics, Ruby Mills have been the hallmark of textile innovation in India since 1917, according to its official website. It is engaged in fabric, interlining, apparel, and real estate. It has a market capitalization of Rs 791 crore.

The board of directors of the company said in the BSE filing, "Pursuant to the Regulation 30 and 42 of SEBI (LODR) Regulations, please take note of the following revisions in the outcome uploaded on 10'' August 2022: Considered, approved and recommended the issue of Bonus equity shares in the ratio of 1:1 i.e. 1 (One) Bonus Share of Rs. 5/- each for every 1 (One) fully paid equity shares held as on Record date i.e. 25t September 2022, by the shareholders of Ruby."

The current market price of the stock is Rs 473 apiece with a gain of 5.14% gain in today's trading. The 52-week high is Rs 500 and 52-week low is Rs 231 apiece. The stock has given a return of 232% in 5 years and 50% in 5 years.

2. Shubham Polyspin Ltd

Shubham Polyspin came into existence in 2012 and currently the company is producing 3000 MT of Polypropylene Multifilament Yarn per annum. Over the years Shubham Polyspin has emerged a sought-after brand in the Polypropylene Yarn (PP Yarn) sector across the globe.

The board of directors in its BSE filing stated, "With reference to our letter dated 20th July, 2022 informing matters to be considered at the Meeting of the Board of Directors of the Company; please note the Board of Directors of the Company has given their approval for the following: 1. Increase in the Authorised share capital of the Company from Rs. 12.01 Crores to Rs. 13.01 Crores divided into 1,30,10,000 Equity share of Rs. 10/- each. 2. Recommended the issuance of 1 (One) bonus equity share of Rs. 10/- each fully paid up for existing 10 (Ten) Equity Shares of Rs. 10/- each by utilising Rs. 1,10,20,000/- out of part of the Credit balance of Profit & Loss Account outstanding and as reflected in the Financial Statements of the Company as on 31st March, 2022. 3. Explore the possibilities of expansion of overall production capacity and/or increase in production of Twine PP Thread in a phased manner."

The current market price of the stock is Rs 303 apiece with a gain of 4.48% in today's trading till 1:10 pm. The 52-week high is 303 and 52-week low is Rs 112 apiece. The stock has also hit a new 52-week high today. It has a market capitalization of Rs 334 crore. The stock has given a return of 1284% in 5 years and 532% in 3 years.

3. M Lakhamsi Industries Ltd

It is a preferred Indian partner for customers' oil seeds, oils, spices & grain requirements. It has been consistently serving over 25+ products to 75+ destinations since the last 50+ years. It relies on pan India local farmer network to procure select raw materials, catering to the diverse product needs of our global customer base.

Earlier, M Lakhamsi Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company is scheduled to be held on August 13, 2022, inter alia, to consider and approve the following matter(s): 1. To consider, approve, and take on record the Standalone Unaudited Financial Results of the Company along with Limited Review Report for the Quarter ended on June 30, 2022. 2. To consider, propose and approve the bonus issue of shares."

Bonus issue of 6:1

Now the board of directors have approved bonus issue and said in its regulatory filing, "The Board of Directors has considered and recommended a bonus issue in the ratio of (6:1) i.e., six new bonus equity Share of Rs. 10/- each for every one existing fully paid-up equity shares of Rs. 10/- each, subject to approval by the members and any other applicable statutory and regulatory approvals, as may be required."

The current market price of the stock is Rs 6.72 apiece with a 52-week high at 6.72 and 52-week low of 6.40 apiece. It has a market capitalization of Rs .57 crore.

Capital gains tax on bonus shares

It's important to remember that bonus shares attract capital gains tax and investors must pay the same, after careful computation. It's important to remember that tax would be calculated, only when you sell the bonus shares. 

What are bonus shares

Bonus shares are new shares issued to existing shareholders of a company. These shares are issued to the shareholders in proportion of the shares that they currently hold. For example, if the company announces a one bonus share for every share held by an investor. As the investor after bonus issue holds two shares (1 original share and 1 bonus share), EPS gets halved. Hence bonus share do not affect total EPS of investor. If the investor holds 100 shares, he would be entitled to another 100 shares as bonus.