It was a good year for the stock markets, with many companies rewarding their shareholders generously by way of bonus issue of shares. The Sensex and the Nifty also hit a new record high during 2022. Here are a list of companies that declared whopping bonus issue of shares more than 1:1 during 2022.
Easy Trip Planners
Easy Trip Planners has declared a bonus in the ratio of 3:1. The Company had fixed November 22, 2022 as the Record Date, for the purpose of ascertaining the eligibility of shareholders entitled for the bonus issue.
The company shares have already gone ex-bonus for the purpose of receiving bonus issue of shares. EaseMyTrip began operations in 2008 by focusing on the B2B2C (business to business to customer) distribution channel and providing travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. Subsequently, by leveraging its B2B2C channel, the company commenced operations in the B2C (business to customer) distribution channel in 2011 by primarily focusing on the growing Indian middle class population's travel requirements.
Currently, the stock of Easy Trip is trading at Rs 59.70.
FSN E-Commerce Ventures Nykaa Ltd.
The company had declared a bonus in the ratio of 5:1, which is fantastic by any stretch of imagination. However, the stock of FSN E-Commerce Ventures Nykaa is still way below the IPO price, even if one considers the bonus issue of shares. The shares of Nykaa are now trading at Rs 175.90 and not very far away from the 52-week lows of Rs 165. The valuations of the stock are still very hefty for investors to even think of making an entry. Nykaa is an Indian e-commerce company, which sells beauty, wellness and fashion products across websites, mobile apps and 100+ offline stores.
Gretex Corporate Services Ltd
Gretex Corporate Services announced a bonus issue of shares in the ratio of a solid 8:1. The ex-date for the same was Oct. 13, 2022. "This is to inform that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) 2015, that the Company has fixed Tuesday, October 11, 2022 as the "Record Date" for the purpose of ascertaining the eligibility of Shareholders entitled for issuance of fully paid up Bonus Shares in the ratio of 8:1 (i.e. issue of 8(Eight) equity share for every existing 1(One) equity shares held of Rs 10/- as on the above mentioned record date)," the company had stated, when issuing record date for bonus shares.
Should you buy stocks that declare bonus issue of shares?
It is hard to say, as sometime the price of the stock corrects itself after the bonus issue of shares. For example, if a company declares a bonus issue of shares in the ratio of 1:1, it is observed that the shares of the company fall by half, after going ex bonus. Investors are not assured of returns. A classic case is Nykaa, where the stock has fallen even more. We suggest investors to look at the fundamentals before investing.
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