By Announcing A 2:1 Bonus Share, the Price of BSE Shares Increases by Around 2%

On Sunday, the Bombay Stock Exchange declared that its directors had approved the issuance of bonus equity shares. The Indian stock market announced a 2:1 bonus issue. The company’s stock increased more than 17% during the past two trading sessions due to the excitement around BSE bonus shares.

On Friday, BSE shares closed at Rs 5438 per share on the NSE, up about 16%. Due to investors’ excitement about the news of the bonus issue incentive, the company’s stock began with gains of around 5% from the previous trading session.

BSE Bonus Share:

Following Sunday’s Board of Directors meeting, the BSE announced that the board authorized the issuance of bonus equity shares in the ratio of Rs 2 per full paid-up equity share.

Bonus equity shares will be issued in a 2:1, meaning that for every 1 (one) fully paid-up equity share of ₹ 2/- held by the company’s shareholders on the record date, 2 (two) equity shares of ₹ 2/- will be issued, subject to shareholder approval via postal ballot, according to a statement the company filed on the NSE exchange.

To reward its current owners, the business announces bonus shares. When a company makes a profit but cannot pay dividends, it provides these extra shares to its owners. Nirmal Bang claims that only a publicly traded company that has made significant profits or has sizable free reserves is permitted to give bonus shares to its owners, as reported by Goodreturns before.

The business did not disclose the company’s record date for the BSE bonus shares issued today. The record date for determining shareholders’ ultimate eligibility for the incentive will be revealed in the upcoming days.

According to the BSE’s statement, “The Company will inform the “Record Date” for determining the entitlement of the Shareholders to receive Bonus Shares in due course.” The eligibility of shareholders to benefit from the bonus issue announcement will be determined by the BSE Bonus issue record date.

Suppose investors wish to become registered shareholders of the business (in this example, BSE) to receive bonus issue rewards. In that case, they must purchase the firm’s shares by the record date, sometimes called the ex-date.

BSE Bonus Issue:

The leading stock exchange in India had previously said that a board of directors meeting would be held on Sunday, March 30, to review and accept the proposal for bonus share issuance.

In three years, this will be the BSE’s second bonus issue. In March 2022, the business issued bonuses at a 2:1 ratio. The business issued a bonus of the same percentage three years later.

BSE Share Price Trend:

Over the last week, there has been a notable increase in the stock market shares. The value of BSE’s stock has risen by 17.36% in the past month, including a 12% gain in the last five trading sessions. The market value of the BSE is Rs 73,617.6 crore. On January 20, 2025, its shares reached its 52-week high of Rs 6,133.40 per share on the NSE. However, on July 20, 2024, its shares fell to its 52-week low of Rs 2,115 per share on the NSE.