Bonus shares are additional shares issued by a company to its existing shareholders, typically in proportion to their current holdings, without any cost. This is done by capitalizing the company’s reserves and converting a portion of retained earnings into equity. Companies usually issue bonus shares when they have significant reserves and want to reward shareholders, without distributing cash.
According to financial experts, the advantages of bonus shares include improving liquidity and increasing shareholder engagement, as they receive more shares at no extra cost. However, they also point out potential disadvantages, such as the dilution of earnings per share (EPS), which may affect the stock’s value. While the bonus shares do not provide immediate financial returns, they can give a psychological boost to investors but may lead to a perception of reduced profitability if not handled properly.
Rajoo Engineers Limited
Record Date – 02-12-2024
Ex-Date – 02-12-2024
Bonus Ratio – 1:3
Rajoo Engineers Limited, established in 1986, is a leading manufacturer of plastic-extrusion machinery based in Gujarat. The company was promoted by Mr. C.N. Doshi and Mr. R.N. Doshi and specializes in designing and manufacturing customized machinery tailored to meet specific customer requirements.
Rajoo Engineers offers a diverse range of products, including Mono & Multilayer Blown Film Lines, Mono & Multilayer Extrusion Coating & Lamination Lines, and Cross Lamination Film Lines.
These products cater to industries such as packaging, plastic processing, and more, providing high-quality, efficient solutions. The company has earned a strong reputation for innovation and reliability in the plastic extrusion machinery sector, serving both domestic and international markets.
Wipro Limited
Record Date – 03-12-2024
Ex-Date – 03-12-2024
Bonus Ratio – 1:1
Wipro Limited is one of India’s leading IT services companies, offering a wide range of services including software development, consulting, cloud computing, cybersecurity, and digital transformation solutions. Wipro has a global presence, serving clients across industries such as banking, healthcare, manufacturing, and retail.
The company is known for its strong expertise in IT outsourcing and managed services, holding a prominent position in the Indian IT sector. Wipro has consistently been recognized for its innovation, with a focus on sustainability and technological advancements, making it a key player in the global IT services market.
Easy Trip Planner Limited
Record Date – 29-11-2024
Ex-Date – 29-11-2024
Bonus Ratio – 1:1
Easy Trip Planners Limited is one of India’s leading online travel agencies. The company offers a range of travel services including flight bookings, hotel reservations, holiday packages, and car rentals. Easy Trip Planners operates through its platform, EaseMyTrip, which is known for its user-friendly interface and competitive pricing.
The company has quickly established a strong presence in the Indian travel market by focusing on customer satisfaction, transparency, and low service charges. With its innovative approach, Easy Trip Planners continues to expand its reach, positioning itself as a prominent player in the online travel industry.
Conclusion
In conclusion, the three companies – Rajoo Engineers Limited, Wipro Limited, and Easy Trip Planners Limited – have announced plans to issue bonus shares to their existing shareholders. This move is seen as a way for these companies to reward their investors and improve the liquidity of their shares in the market.
While bonus shares do not provide immediate financial returns, they can still have a positive impact on investor sentiment and engagement. The varying bonus ratios indicate that each company has its strategic considerations in implementing this corporate action.
Written By: Dipangshu Kundu
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