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All existing shareholders before the ex-date and record date are eligible to receive bonus shares issued by a company. However, to qualify to receive bonus shares, the company stocks must be bought before the ex-date.
Tata Power Company Ltd. has not announced any bonus since Jan 1, 2000.
A company issues bonus shares to increase liquidity of the stock and increase participation of investors. Secondly, the stock price drops to a reasonable range post a bonus issue, which makes it affordable for investors to purchase more shares.
Is bonus share good for investors?
Bonus shares help a company to enhance its value positions in the equity market. It also helps them to gain the trust of their existing shareholders, which eventually attracts more small investors to invest. Declaring bonus shares, certainly increase the equity base of a company.
Which Indian stocks give regular share bonuses?
ITC virtually issues a Bonus every 4–5 years. Originally Answered: Which indian stocks gives regular share bonuses? Bonuses or dividend? If you are asking about bonuses then Wipro, Infosys has given the highest number of bonus shares in India.
Bonus shares to simply put it , it is way of capitalization of reserves by the companies. Some Indian companies which have a regular track record of issuing bonus shares are: 2. Infosys 4. ITC Bonus shares are given to the existing shareholders in the proportion of the number of shares they hold.
Why should you invest in dividend stocks in India?
List of Best Dividend Stocks in India for Income Investors: Whenever a retail investor, like you and me, buys a stock, then their main aim is to make money through their investment. There are basically two ways by which anyone can earn money by investing in stocks.
No particular company can be branded as a ‘regular bonus share issuer’. Most of the times, the bonuses lended out are irregular. So, it is difficult. You can check out the splits, bonus and dividend history of the company on the BSE and NSE website and take a call.