Here is the list of upcoming bonus stocks in India. These companies have declared bonus shares recently.
FOCUS BUSINESS, VEER GLOBAL INFRA and LANCOR HOLDINGS are among the companies which have declared bonus shares in August 2023.
Bonus shares are free shares that shareholders receive against shares they currently hold. These allotments typically come in a fixed ratio like 1:1, 2:1, 3:1 etc.
If the ratio is 2:1, existing shareholders will receive two ''bonus'' shares for every 1 share originally held. Post the issue, investors will have three shares of ABC Ltd.
Some people think that issuing bonus shares can be beneficial for share prices. The logic behind this is that the increased marketability of the shares leads to increased demand. This, in turn, pushes the share price up.
The other side of this it is while bonus may seem good, they actually give investors nothing they didn't already have. In substance, it's just a way of breaking up the same company into a higher number of shares and distributing these additional shares pro-rata to shareholders.
On Friday last week, Indian share markets continued the downtrend as the session progressed and ended the day lower.