Upcoming Bonus Shares
| Company Name | Bonus Ratio | Ex-Dividend Date | Record Date |
|---|---|---|---|
| Loading… | |||
Bonus Share Ratio – Meaning & Examples
| Bonus Ratio | What it Means | Example |
|---|---|---|
| 1 : 10 | You get 1 free share for every 10 shares you own | If you hold 100 shares → you receive 10 bonus shares → Total = 110 shares |
| 23 : 1 | You get 23 free shares for every 1 share you own | If you hold 10 shares → you receive 230 bonus shares → Total = 240 shares |
| 4 : 1 | You get 4 free shares for every 1 share you own | If you hold 50 shares → you receive 200 bonus shares → Total = 250 shares |
| 1 : 2 | You get 1 free share for every 2 shares you own | If you hold 100 shares → you receive 50 bonus shares → Total = 150 shares |
| 5 : 40 (1 : 8) | You get 5 free shares for every 40 shares you own | If you hold 400 shares → you receive 50 bonus shares → Total = 450 shares |
Note: Bonus shares do not change your total investment value. The share price adjusts so that your overall value remains the same.
What Are Bonus Shares?
Bonus shares are free shares issued by a company to its existing shareholders in proportion to the number of shares they already hold. Bonus issues are a way for companies to reward shareholders without paying cash dividends. It means you get additional shares for free based on your existing holding.
For example:
- If a company declares a 1:2 bonus
- You get 1 free share for every 2 shares you hold
- If you hold 100 shares, you’ll receive 50 bonus shares
Why Do Companies Give Bonus Shares?
- To reward long-term shareholders
- To increase liquidity
- To bring share price to a more tradable range
- To show confidence in future growth
Bonus issues do not change your total investment value immediately — but they increase the number of shares you own.
How Bonus Shares Are Allocated?
To qualify for bonus shares:
- You must hold the shares before the record date
- Shares held in Demat account will be eligible
- Bonus shares are credited automatically
If the record date is 12 March, you must own shares by the previous day to qualify.
How Bonus Ratio Works?
If a company announces a 2:5 bonus:
- For every 5 shares you own
- You will receive 2 bonus shares
- If you hold 500 shares, you’ll receive 200 bonus shares
Your total number of shares increases — but your investment value remains the same on the bonus date.
Important Dates You Must Know
- Announcement Date – When company declares bonus shares
- Record Date – Eligible holding date
- Credit Date – When bonus shares are credited
Always check the company notice or exchange update to confirm dates.
Should You Buy Before Bonus Record Date?
Many investors try to accumulate shares before the record date hoping for bonus benefits.
But remember:
- Bonus itself does not create real value
- Fundamentals matter most
- Check financials before buying
Never invest based on bonus news alone.