Bonus Issues 2024: 6 Bonus Shares That Will Start Trading Ex-Bonus From May 17-June 22

Recently many leading private and public sector undertakings declared bonus shares. These companies are Inox Wind, Titan Intech, Newtime Infrastructure, HPCL, BPCL, Motilal Oswal Financial Services. The bonus issues will start trading ex-bonus beginning from May 17 till June 22. Some of these stocks have given shareholders multibagger returns in just last 6-months.

Below Are The Companies That Declared Bonus Shares Recently and will start going ex-bonus starting from May 17 to June 22, 2024:

1. Titan Intech Ltd: The company issued bonus share in the ratio of 3:5 with record date fixed as May 17, 2024 and ex-date set as May 17, 2024. Last trading price of Titan Intech Ltd share on BSE is Rs 95.83 per share with intraday gain of 4.81%. The small cap IT enabled stock zoomed 85% in last 1-year and 57% in last 6-months.

2. Newtime Infrastructure Limited: Last trading price of Newtime Infrastructure Limited share on BSE is Rs 51.68 per share. Newtime Infrastructure shares offered return of 184% in last 6-months and soared 369% in last 1-year. The Bord of Newtime recommended bonus share in the proportion of 2:1 with record date fixed as May 21.

3. Hindustan Petroleum Corporation Ltd: Last trading price of Hindustan Petroleum Corporation Ltd share on BSE is Rs 501.45 per share with intraday gain of 0.03%. The Refineries PSU rallied 67% in last 6-months and 96% in last 1-year. The Board of Hindustan Petroleum Corporation Ltd on May 9 recommended 1:2 bonus share implying shareholders will receive 1 new share for every 2 shares held as on the record date. The Board fixed June 21, 2024 as record date for bonus issue.

4. Bharat Petroleum Corporation Ltd: The board of Bharat Petroleum Corporation Ltd announced on May 9 bonus share in the proportion of 1:1. Bharat Petroleum Corporation shares zoomed 61% in last 6-months and 66% in last 1-year. Last trading price of BPCL share on BSE is Rs 618.60 per share with intraday gain of 4.44%. BPCL fixed June 22, 2024 as the record date for bonus share.

5. Motilal Oswal Financial Services Limited: Last trading price of Motilal Oswal Financial Services share on BSE is Rs 2147.55 per share with intraday fall of 0.26%. The board of Motilal Oswal Financial Services recommended 3:1 bonus issue and set June 10 as the record date. Motilal Oswal Financial Services shares zoomed 110% in last 6-months and 238% in last 1-year.

6. Inox Wind Ltd: Last trading price of Inox Wind share on BSE is Rs 543.45 per share. Inox Wind shares soared 128% in last 6-months and gained 381% in last 1-year. Board of Inox Wind revised record date for 3:1 bonus issue and fixed May 25 as the new record date.

Why Bonus Shares Are Issued?
Bonus shares are issued under the circumstance when a company fails to pay a dividend to its existing shareholders as a result of lack of funds despite earning decent profits for a particular quarter. In such a situation, the company seeks to issue bonus shares to the current shareholders instead of making the dividend payment. Bonus shares are unusually offered to the shareholders after determining their current holding in the company. The process of issuing bonus shares to the shareholders is also known as capitalization of profits as it is issued out of profits or company's reserves.

Key Benefits of Bonus Shares
1. When an existing shareholder received bonus shares from the company, it will significantly boost his investments in the company and consequently raises the liquidity of stock. The long-term shareholders of a company who are keen to enhance their investment, can benefit a lot from bonus shares.
2. Bonus shares give a strong boost to the confidence of the investors in the company's operations as company utilizes the cash for the growth of business.
3. The investors are saved from paying any taxes on receiving bonus shares.
4. Whenever the company announces dividend in future, the existing shareholder is set to obtain more dividend as he possesses more shares in the company as a result of bonus shares.
5. Bonus shares send out positive message to the market as it reflects that the company is determined towards its long-term growth.
6. With bonus shares, the outstanding shares are also raised which consequently enhances liquidity of stock.

Disclaimer: The stocks just highlight the bonus share and are not recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stocks mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.