Bonus Shares in July 2023

Bonus shares are shares of companies issued from their existing stock reserves as a reward program for existing shareholders. Companies issue bonus shares at a fixed ratio depending on the current number of shares held by the shareholders. For example, if a company announces bonus shares at a 2:1 ratio, it implies that one shareholder will receive 2 bonus shares for 1 fully-paid share of the company.

Bonus shares don’t alter the company’s market capitalisation but increase the number of outstanding shares and, thus, the liquidity in the market.

Bonus issues don’t weaken the value of the current shareholders because they are issued at a fixed proportion, which keeps the overall value of the shareholders’ holdings intact. But on the flip side, bonus shares may reduce earnings per share (EPS) for investors. Secondly, receiving bonus shares doesn’t attract tax like dividend tax, but you might have to pay capital gain tax when you offload the additional shares.

Now, keeping these points in mind, let’s see which companies issued bonus shares in July 2023.

List of Bonus Share in July 2023

Remedium Lifecare Ltd.

The Indian pharmaceutical company is engaged in trading of Active Pharmaceutical Ingredients (APIs) and raw materials used in API. It primarily operates through two business verticals, namely, products and services. 

Remedium Lifecare has declared bonus shares at the fixed ratio of 9:5. The record date is decided on 29 July, 2023.

Essential financials:

• 5-yr CAGR: 219%  
• Stock PE: 274
• Dividend yield: 0.00%
• 5-yr ROE: 33%

Leading Leasing Finance and Investment Company

The company is engaged in the business of financing industrial enterprises. It is involved in buying, selling, hypothecating, and disposing of any share, stock debentures, securities (including G-sec) and other properties, and hire and purchase business.

Leading Leasing has announced a 1:1 bonus share for investors, meaning for each fully paid stock of Leading Leasing, shareholders will receive 1 bonus share. 

Essential financials:

• 5-yr CAGR: 28.8%  
• Stock PE: 16.0
• Dividend yield: 0.00%
• 5-yr ROE:14% 

Aptech Ltd.

Aptech Ltd. has fixed 14 July, 2023 as the record date for bonus issues. The company has decided to issue bonus issues at a fixed ratio of 2:5.

Aptech is a non-formal vocational company that offers training in information technology, media and entertainment, retail and aviation, beauty, wellness, banking, finance, preschool teacher training, etc.    

Essential financials:

• 5-yr CAGR: 17.1%  
• Stock PE: 30.5
• Dividend yield: 0.86%
• 5-yr ROE: 14%

Roto Pumps Ltd.

Roto Pumps sells pumps, spares, and retrofit parts to a diverse range of industries and also successfully exports to over 50 countries.

The company has announced bonus issues at 1:1 ratio. The stocks will trade ex-bonus on 7 July, 2023.

Essential financials:

• 5-yr CAGR: 57.4%  
• Stock PE: 36.5
• Dividend yield: 0.41%
• 5-yr ROE: 21% 

Bhansali Engineering Polymers Ltd.

The company manufactures acrylonitrile butadiene styrene (ABS) resins and styrene acrylonitrile (SAN) resins, which are highly specialised thermoplastics.  

Bhansali Engineering Polymers Ltd. has declared bonus issues for July 2023 at a ratio of 1:2. The shares will trade ex-bonus on July 5, 2023.

Essential financials:

• 5-yr CAGR: -1.08%  
• Stock PE: 16.0
• Dividend yield: 0.76%
• 5-yr ROE: 31% 

Kansai Nerolac Paints Ltd.

The India-based Kansai Nerolac paint company is principally engaged in manufacturing a diverse range of paints.  

Kansai Nerolac has announced 1:2 bonus issues, and the stocks will trade ex-bonus on 4 July, 2023. 

Essential financials:

• 5-yr CAGR: 0.63%  
• Stock PE: 53.5
• Dividend yield: 0.63%
• 5-yr ROE: 12% 

Bottom Line

Instead of cash dividend payments, companies issue bonus shares to existing shareholders as a reward for investing in their stocks. It also helps attract retail investors. If you are excited to hear about the upcoming bonus shares in July 2023 and want to start trading in the stock market, open a Demat account with Angel One today!

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.