Bonus Shares are additional shares offered to the shareholders of the company. The company can opt to give out its accumulated earnings in the form of Bonus Shares instead of Dividends.
Upcoming Bonus Shares in India
This section lists the companies likely to declare Bonus Shares in 2025. It will dynamically be updated as and when the announcement is made. The ratio of Bonus Shares is given alongside the date of the announcement.
Why Are Companies Issuing Bonus Shares?
To increase retail participation: When the price of a share is high it becomes difficult for retail investors to purchase shares of a particular company. When the number of shares increases the price goes down making it accessible to retail traders.
To increase liquidity base: Issuing Bonus Shares increases the number of outstanding shares. This leads to higher participation of traders, which in turn increases the liquidity of the shares.
To reward investors: Rewarding the investors for their confidence and commitment to the company, which also helps in boosting the investor sentiment towards the company.