Upcoming bonus shares: 2 stocks at upper circuit limit granting 1:2 and 1:1 bonus issue in the coming weeks of April
A corporate action recognized as the issuance of additional shares to current shareholders of a corporation, typically in proportion to their current shareholding, is known as a bonus share. The company does this to entice its shareholders and raise the number of outstanding shares. Bonus shares essentially raise the total number of outstanding shares and lower the share price, but they have no impact on the investor’s holdings’ overall worth. The Board of Directors may suggest the issuance of bonus shares in a resolution with a certain ratio, and the company’s shareholders must later ratify this proposal at a general meeting. These are the 2 companies that will be announcing bonus shares in April in addition to being locked at their upper circuit levels.
Achyut Healthcare
The Board have recommended issuing 46,72,500 equity shares of Rs.10/- each as bonus issue in the ratio of 1:2 i.e. one new bonus equity share of ₹10/- each for every two existing fully paid up equity shares of Rs.10/- each, subject to approval by the members and any other applicable statutory and regulatory approvals. 25th April, 2023 has been fixed as the record date for the purpose of issue of bonus shares to the eligible shareholders of the company.
On Friday, the shares of S&P BSE SME IPO Achyut Healthcare closed at a 5% upper circuit limit at ₹58.00 apiece level. The stock recorded a total traded volume of 24,000 shares and a deliverable volume of 100%. In the last 1 year the stock has generated a multibagger return of 190.00% and on a YTD basis it has generated a multibagger return of 120.11% so far in 2023. The stock touched a 52-week-high of ₹60.00 on (28/03/2023) and a 52-week-low of ₹60.00 on (28/03/2023).
Jet lnfraventure
The company has fixed Friday, 21st April, 2023 as the record date, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus shares in the proportion of 1 equity share of Rs. 10/- each for every 1 existing equity shares of Rs. 10/- each.
On Friday, the shares of Jet Infraventure closed on the BSE at 5% upper circuit limit of ₹33.18 apiece level. The stock recorded a total traded volume of 46,000 shares and a deliverable volume of 42,000 shares or 91.30%. In the last 1 year, the stock has fallen 46.48% and on a YTD basis it has fallen 61.01% so far in 2023. The stock touched a 52-week-high of ₹90.00 on (06/02/2023) and a 52-week-low of ₹22.21 on (24/03/2023).
Ankush Bali, Financial Portfolio Manager- PGDBF | LIMRA | MDRT | AMFI REGISTERED said “Bonus shares means it’s bonus share given to any shareholder. Better explained with an example, if a company declares 1:1 so if you have 100 shares of that company you get 100 more without any cost. Sometimes it’s 10:1 which means for every 10 shares you get 1 share. Simply to be more attractive, if any company gives you bonus shares every year it’s basically doubling every year. The price may fluctuate but when it comes to the original price after the bonus your capital is doubled. Infosys is the biggest example. If you had bought IPO of Infosys now you would be a millionaire. When you receive a bonus share no tax is to be paid but when you pay LTCG is taxable. But it’s amazing to grow your capital if you’re investing in companies which give bonuses.”
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.