A bonus share is a free additional share given to existing shareholders, usually in proportion to the number of shares they already own. Companies issue bonus shares as a way to distribute accumulated profits to shareholders without paying out cash.
For example, a 1:1 bonus issue means that for every share a shareholder owns, they receive one additional share.
A stock split is when a company divides its existing shares into multiple shares, increasing the number of shares in circulation but without changing the overall value of the investment.
For example, in a 2:1 stock split, shareholders receive two shares for every share they previously held, but the price of each share is halved. This makes the shares more affordable, without affecting the overall market value of the company.
The stocks to watch out for are listed below
Ami Organics Limited
Ami Organics Limited is a leading manufacturer of pharmaceutical intermediates and specialty chemicals. The company serves industries such as pharmaceuticals, agrochemicals, cosmetics, and polymers, exporting to over 55 countries.
With a market capitalization of Rs. 9,511.53 Crores on Thursday, the shares of Ami Organics Limited jumped upto 1.5 percent, making a high of Rs. 2365.20 compared to its previous closing price of Rs. 2328.35.
The company has announced a 1:2 stock split, where one equity share with a face value of Rs. 10 will be split into two equity shares with a face value of Rs. 5, and the record date for the bonus share is set on April 25.
Ranjeet Mechatronics Ltd
Ranjeet Mechatronics Ltd specializes in providing mechanical, electrical, plumbing, and firefighting (MEP-F) solutions. The company offers services such as design engineering, installation, testing, commissioning, and annual maintenance contracts.
With a market capitalization of Rs. 49.96 Crores on Thursday, the shares of Ranjeet Mechatronics Limited jumped upto 4 percent, making a high of Rs. 24.98 compared to its previous closing price of Rs. 24.00.
The company has announced a 1:2 stock split, where one equity share with a face value of Rs. 10 will be split into two equity shares with a face value of Rs. 5, and the record date for the bonus share is set on April 21.
Captain Technocast Ltd
Captain Technocast Ltd manufactures investment casting products for various industries, including automotive, defense, aerospace, and marine applications. The company produces castings in materials like carbon steel, alloy steel, super alloy steel, and non-ferrous metals.
With a market capitalization of Rs. 615.22 Crores on Thursday, the shares of Captain Technocast Limited declined upto 4.6 percent, making a low of Rs. 510.00 compared to its previous closing price of Rs. 535.00.
The stock has announced a 1:1 Bonus share, meaning shareholders will receive one share for every share held and the record date for the bonus share is set on April 21.
Written by Sridhar J
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