Sometimes bonus is also issued with the objective of transferring unused reserves of the company. The company does not have to face the same tax liability as in the case of dividend paid in cash for bonus share issue activities. And with the availability of additional shares, buying and selling of the company’s shares becomes relatively easy. Below are the details of 6 companies giving bonus shares this week.
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Pavna Industries is a microcap company that manufactures zinc and aluminum based automotive components. The bonus share was announced in July. According to this, the bonus share will be given in the ratio of 1:1. That is, for every share held, one additional share will be received.
The X bonus date for this is fixed on 5th September and the record date is 6th. Meanwhile, Pavna Industries was at Rs 404 last week (NSE-SM : PAVNAIND) Closing of share.
Escorp Asset Management is a nano-cap company that provides portfolio guidance to capital markets investors. In the meeting of the board of directors held in June, it was announced that the bonus share will be given in the ratio of 3:2. That means for every two shares held, you will get three more shares.
The X bonus date for this has been decided on 6th September and the record date on 6th. Meanwhile, Escorp Asset Management was at Rs 29.5 last week (BSE : 540455) Trading in the stock has been discontinued.
Dangee Dums Limited is a small cap company that manufactures various types of sweets and bakery food products on contract basis. It started in 2010 as a dedicated showroom of high quality chocolates. Later, high quality cakes and pastries were introduced in the market at relatively low prices and gained acceptance. At present around 80 branches are functioning in 5 cities of Gujarat.
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Dangi Dums joined on 2nd August (NSE : DANGEE) The board of directors of the company had announced to give bonus shares to the investors. Bonus shares will be issued after completion of share split. Issue bonus shares to investors in the ratio of 1:2. That means that for every 2 shares of Rs 1 face value held, you will get one additional share.
The X bonus date for this has been decided on September 6 and the record date on September 7. Meanwhile, Dangi Dums stock closed at Rs 422 last week.
GAIL (India) is the largest public sector natural gas production and distribution company in the country. In the meeting of the board of directors held in July, it was announced that bonus shares will be given in the ratio of 1:2. This means that for every two shares held, one additional share will be received.
The X bonus date for this has been fixed on 6th September and the record date is 7th. Meanwhile GAIL was at Rs 135 (BSE: 532155, NSE : GAIL) Shares finished trading on Friday.
Sonata Software is a leading technology company operating globally. The company is mainly focused on Business Intelligence & Analytics, Application Development Management, Mobility, Cloud, Social Media, Enterprise Services and Infrastructure Management Services. Most of the customers of this small cap company are from US, Europe, Middle East and Australia regions.
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of Sonata Software, which joined on July 25 (BSE: 532221, NSE : SONATSOFTW) It was decided to give bonus shares in the ratio of 1:3 in the Board of Directors meeting. Thus, for every 3 shares held, one more share will be received.
The X bonus date for this has been decided on September 8 and the record date has been decided on the 10th of this month. Meanwhile, Sonata Software stock closed at Rs 720 last week.
Jyoti Resins & Adhesives is a small cap company that owns the second largest wood adhesive brand in the country. Under the brand name Euro 7000, different types of wood glues are marketed. In the meeting of the Board of Directors held last May, the bonus share was announced in the ratio of 2:1. That means for every share held, you will get two more shares.
The X bonus date for this has been decided on September 8 and the record date on September 9. Meanwhile, Jyoti Resins was at Rs 4,000 on Friday (BSE : 514448) Closing of share.
How will it be reflected?
When the bonus is issued, the share price will be reduced in proportion and the total number of shares will be proportionately increased. But the difference is that the face value of the stock does not change as it happens in a stock split.
Will the dividend increase?
Additional shares received through bonus issue will increase the dividend received from the company in the future. This is because the face value of the shares has not been reduced when the bonus shares are granted.
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