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 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
Enser Communications Ltd
The company specializes in providing telecommunication solutions, primarily focusing on designing, developing, and installing advanced communication systems. The company offers services in areas such as networking, structured cabling, data center solutions, and communication equipment.
With a market capitalization of Rs. 252.24 crores, the stock closed at Rs. 147.55 as of January 31. The company has announced a 1:5 stock split, where one equity share with a face value of Rs. 10 will be split into five equity shares with a face value of Rs. 2, as on the record date i.e., February 7th.
Rama Phosphates Ltd
Rama Phosphates Ltd is an Indian company primarily engaged in the manufacturing of a wide range of fertilizers, including single superphosphate (SSP), NPK fertilizers, and other soil conditioners. The company focuses on providing quality agricultural inputs to enhance crop productivity.
With a market capitalization of Rs. 371.31 crores, the stock closed at Rs. 228.53 as of January 31. 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, as on the record date i.e., February 7th.
AGI Infra Ltd
AGI Infra Ltd is a leading infrastructure development company in India, specializing in the construction and development of real estate, residential, commercial, and industrial properties. It is also involved in civil engineering projects, including roads, bridges, and other infrastructure-related services.
With a market capitalization of Rs. 1,931.4 crores, the stock closed at Rs. 1627.75 as of January 31. 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, as on the record date i.e., February 7th.
Sangam Finserv Ltd
Sangam Finserv Ltd is a financial services company that offers a wide range of financial products, including loans, insurance, and investment solutions. It specializes in providing financial assistance to individuals, businesses, and corporations, with a focus on customer-centric services and financial planning.
With a market capitalization of Rs. 280.14 crores, the stock closed at Rs. 315.5 as of January 31. The stock has announced a 4:1 Bonus share, meaning shareholders will receive four shares for every one share held and the record date for the bonus share is set on February 7.
Written by Sridhar J
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