At certain intervals, companies issue additional shares only to their existing shareholders. These are known as bonus shares. These shares are allocated to all shareholders based on their original holdings. Companies usually issue bonus shares instead of distributing profit as cash.Β
Issuing bonus shares means the company is growing and profitable for shareholders. Bonus shares in India attract long-term investors the most. In this blog, let’s check out the list of companies issuing bonus shares and the best bonus-paying stocks in India.Β
What are Bonus Shares?
A bonus is an extra share a company issues from its cash reserve. It is a reward provided to the shareholders free of cost. Bonus issue increases their trust in the company as well. Let’s check out its basic features.
Features of Bonus Shares in India
Long-term shareholders are likely to stick to companies with high bonus shares. Why so? Let’s learn from the features of bonus shares.
Features | Details |
Fixed Allocation | Bonus shares are allocated based on a fixed ratio. So, if the fixed ratio is 2:1, it means that every 2 shares a shareholder holds will be given one new share. This makes the process of issuing bonus shares easy and unbiased. |
No Taxation on Issue | There is no tax liability on issuing India’s best bonus-paying stocks. The bonus shares are taxed at sale as capital gains. |
Existing Shareholders | Only existing shareholders of a company can be the shareholders of bonus shares. |
Increases Liquidity | Companies with high bonus shares also have high liquidity. It makes the shares affordable for the general public. |
Types of Bonus Shares in India
The table below shows the two types of high-paying bonus shares in India:
Types of Bonus Shares | Description |
Fully Paid Bonus Share | These are fully free of cost. There are no costs to be borne by the shareholders. |
Partially Paid Bonus Share | In this type of bonus share, the shareholders may have to pay a certain amount for its issue. |
Benefits of Best Bonus Paying Stocks in India
High-paying bonus stocks are beneficial for both the shareholders and the company. Let’s see how.
Benefits for Shareholders
- It increases their overall shareholding within the company without any additional costs.Β
- There is no tax burden on shareholders regarding the best bonus-paying stocks in India.
- It is a good measure of long-term capital gain.Β
Benefits for Companies
- Increases the market position and credibility of the business.Β
- Saves the cash reserves to facilitate future growth.
- The shareholders have increased trust and faith in the company.
- Motivates others to invest in the company with a low share price.Β
List of High Paying Bonus Share Stocks in 2025
March 2025
This table contains the list of companies issuing high-paying bonus shares in March 2025 in India:
Company Name | Ratio of Bonus Issue | Record Date |
Anand Rathi Wealth Ltd | 1:1 | 05/03/2025 |
Vantage Knowledge Academy Ltd | 2:1 | 05/03/2025 |
Pradhin Ltd | 2:1 | 07/03/2025 |
SBC Exports Ltd | 1:2 | 10/03/2025 |
Padam Cotton Yarns | 2:3 | 18/03/2025 |
April 2025
The table below includes the list of companies with the highest-paying bonus shares in April 2025:Β
Company Name | Ratio | Record Date |
Capital Trade Links | 1:1 | 02/04/2025 |
Ranjeet Mechatronics | 1:1 | 02/04/2025 |
SAL Automotive | 1:1 | 03/04/2025 |
KBC Global Ltd. | 1:1 | 04/04/2025 |
When Can a Company Issue High-Paying Bonus Shares?
To issue high-paying bonus shares, a company must follow certain regulatory guidelines. These include:
- Compliance with SEBI regulations;
- Obtaining mandatory approval of shareholders;
- Authorisation from the Articles; andΒ
- The total share capital must never cross the authorised limit.Β
Tips to Track the New Issue of Bonus Shares
A long list of companies issuing bonus shares in India each year. Investors can keep track of these new issues to be at the top of their game. Here are some tips to help investors gain access to companies with high bonus shares.
- Track announcement on NSE/BSE
The stock exchange platforms like NSE and BSE regularly update the actions of various companies, including a list of companies issuing bonus shares.
- Follow SEBI notices
SEBI mandates companies to let them know about their bonus issues. SEBI then displays these details on its website.
- Use Platforms and Professionals
These days, many platforms like Dhan can help you with real-time updates. Moreover, with a professional’s advice, you will know which bonus stocks will be high-paying.
Understand Bonus Shares and Invest Smarter
To conclude, before investing in bonus shares, one must always check the company’s fundamentals and the frequency at which the company issues bonus shares, and avoid listening to just the hype.
Remember, bonus shares might be free, but you must invest smartly. Do your research, and consult a professional!