A bonus share is a free additional share given to existing shareholders, usually in proportion to the number of shares they already own. Companies issue bonus shares as a way to distribute accumulated profits to shareholders without paying out cash. For example, a 1:1 bonus issue means that for every share a shareholder owns, they receive one additional share.
A stock split is when a company divides its existing shares into multiple shares, increasing the number of shares in circulation but without changing the overall value of the investment. For example, in a 1:2 stock split, one equity share is divided into two equity shares; therefore, the halved. This makes the shares more affordable, without affecting the overall market value of the company.
The stocks to watch out for:
Algoquant Fintech Ltd
Algoquant Fintech Ltd is an Indian financial technology firm specializing in quantitative trading solutions and algorithmic trading strategies. The company leverages advanced data analytics, machine learning, and artificial intelligence to help investors and institutions optimize their trading strategies in the financial markets. The firm caters to both retail and institutional clients, offering high-performance trading systems.
With a market capitalization of Rs. 2,167.56 crores, the stock closed at Rs. 1388.00 as of August 14. The company has announced a 1:2 stock split, where one equity share with a face value of Rs. 2 will be split into two equity shares with a face value of Rs. 1, as on the record date, i.e., August 18th.
Along with it, the stock has also announced an 8:1 Bonus share, meaning shareholders will receive eight shares for every one share held, and the record date for the bonus share is set on August 18th.
Bemco Hydraulics Ltd
Bemco Hydraulics Ltd is an Indian company known for manufacturing hydraulic systems and equipment used across various industries, including construction, automotive, and industrial machinery. The company designs and produces high-quality hydraulic cylinders, power packs, and custom solutions to meet the specific needs of its clients. It serves both domestic and international markets, playing a crucial role in several heavy machinery sectors.
With a market capitalization of Rs. 619.54 crores, the stock closed at Rs. 2833.20 as of August 14. The company has announced a 1:10 stock split, where one equity share with a face value of Rs. 10 will be split into ten equity shares with a face value of Rs. 1, as on the record date, i.e., August 22nd.
Along with it, the stock has also announced a 1:1 Bonus share, meaning shareholders will receive one share for every one share held, and the record date for the bonus share is set on August 22nd.
Dev Information Technology Ltd
Dev Information Technology Ltd is a leading IT services and solutions provider based in India. It offers a wide range of services, including software development, enterprise resource planning (ERP) solutions, cloud computing, and IT consulting. Dev IT serves clients across various industries such as manufacturing, healthcare, and retail, with a focus on helping businesses leverage technology for better operational efficiency and digital transformation.
With a market capitalization of Rs. 249.11 crores, the stock closed at Rs. 110.55 as of August 14. The company has announced a 2:5 stock split, where two equity shares with a face value of Rs. 5 will be split into five equity shares with a face value of Rs. 2, as on the record date, i.e., August 21st. Suppose the person has one share; in this instance, fractional shares are usually either rounded off or settled in cash.
Written by Sridhar J
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