Bonus share or Bonus issue refers to a non-chargeable auxiliary share provided to the shareholders as a bonus.
Bonus shares are furnished at no extra rate and depend on the number of shares held by a shareholder in the bonus-issuing company.
There are many companies that offer bonus shares in India. If you are wondering which of the share companies offer the most bonus shares, you are at the right place.
In this blog, we have listed a total of ten publicly listed companies that issue bonus shares. Let’s check them out!
What is a Bonus Issue?
Bonus issue also refers to scrip issues, capitalization issues, etc. Bonus shares in India are issued by the firms only after the culmination of 1 year of the previous issue.
These bonus shares do not influence a firm’s net possessions as there is no cash flow.
Let’s take a simple instance to understand bonus issues while share trading. A shareholder has 1,000 quantities of stock, and the bonus issue happens at a ratio of 1:1. The shareholder will get 1,000 bonus shares (2000*1/2 = 1000).
Bonus shares are often issued by companies to promote retail participation, and this is also a means for them to increase their equity base!
Most Bonus Giving Shares in India
Here we are highlighting the top 10 stocks that have a record of distributing the most bonus shares in India to their investors and could disperse more in the future, too.
1. BPCL
First on our list is the Indian oil major BPCL, i.e., Bharat Petroleum Corporation Limited. The firm has rewarded its shareholders with bonus shares 4 times since the year 2000, making it a company offering regular bonus-giving stocks in India. The latest offering by the company was in 2024 in a ratio of 1:1.
2. Wipro
Next on our chart is the Indian IT major, Wipro. Wipro has given bonus shares to its shareholders 5 times since 2000. The recent offering was in the year 2019 when the firm dispersed the bonus shares in a ratio of 1:3 to its shareholders.
3. Infosys
Third, on our list is the IT giant Infosys. The firm has issued bonus shares 5 times to its stakeholders since 2000 and is one of the regular bonus-giving stocks in India. The current offering was accomplished in 2018 when the company declared a bonus issue at a 1:1 ratio.
4. ITC
On the fourth number is the FMCG ( fast-moving consumer goods ) giant, ITC, which is another regular bonus giving stock in India. From 2005 to 2016, the firm has rewarded bonus shares a total of 3 times. The last bonus offering was in 2016 when ITC gave bonus shares in the ratio of 1:2.
5. GAIL (India)
GAIL . has issued bonus shares 5 times between 2008 to 2022. The recent offering of bonus shares by the firm was in September 2022 in the ratio of 1:2 for its shareholders.
6. Dabur India
The sixth number on our list is Dabur India. This firm has offered its bonus shares 4 times from 1993 to 2010. The last bonus offered by Dabur India was announced in 2010 at a 1:1 ratio.
7. Samvardhana Motherson
The seventh position of our list is grabbed by Samvardhana Motherson, which is the most bonus-paying stocks in India. The company has rewarded its shareholders 10 times ( 1997 to 2022 ) with bonus shares since 1997. The latest issue of bonus shares happened in 2022 in a ratio of 1:2.
8. Tata Consultancy Services
The eighth rank on our list is taken by the well-known giant Tata Consultancy Services. The company has issued its bonus shares 3 times from 2006 to 2018. The last issue of bonus shares occurred in 2018 in a ratio of 1:1.
9. Indian Oil Corporation
On the ninth number is the oil giant firm Indian Oil Corporation. The firm has offered bonus shares a total of 7 times since 1994 to its stakeholders. The latest issue of bonus shares was declared in 2022 in a ratio of 1:2.
10. Oil and Natural Gas Corporation
Coming in at number ten on our list is the popular oil company ONGC . The company has rewarded its stakeholders a total of 3 times with bonus shares since 2006. The last bonus shares were declared in 2016 in a ratio of 1:2.
11. Hindustan Petroleum Corporation
Hindustan Petroleum Corporation has rewarded its stakeholders with bonus shares for a total of five times since 1994. The first bonus shares were declared on 30-06-1994 in a ratio of 2:1, and the latest were declared on 09-05-2024 in a ratio of 1:2.
12. Reliance industries
Last but not least, Reliance! It has declared bonus share issues for a total of 4 times since inception. The first bonus shares were declared in 1983 at a ratio of 3:5, and the latest was declared in 2017 at a ratio of 1:1.
Conclusion
Bonus shares are additional share issues offered by a company to its existing investors.
They can be a part of various investment strategies that involve buying and holding shares that are fundamentally strong for the long term.
Disclaimer: Our blogs are not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing. Copyrighted and original content for your trading and investing needs.
