bonus share news 2024

Introduction: What’s the Buzz Around Bonus Share News 2024?

In 2024, bonus shares are making headlines once again as companies across sectors announce exciting share rewards to their existing shareholders. If you're an investor or even a market enthusiast, the term “bonus share news 2024” is likely popping up in your newsfeed. But what are bonus shares, and why do companies issue them? More importantly, which companies have already made bonus share announcements this year? This article dives deep into the concept of bonus shares, covers the latest bonus share declarations for 2024, and lists key eligibility criteria, record dates, and strategic insights. Read till the end to make informed investment decisions.

What Are Bonus Share News 2024?

Bonus shares are additional shares issued by a company to its existing shareholders at no extra cost. These are typically given in a specific ratio, such as 1:2 (one bonus share for every two shares held). It’s a way for companies to reward shareholders without affecting the cash reserves.

Example:
If you own 100 shares and the company announces a 1:1 bonus, you’ll receive 100 extra shares, doubling your holding.

Why Do Companies Issue Bonus Share News 2024?

Companies issue bonus shares for several strategic reasons:

To reward loyal shareholders without distributing cash dividends.
To make shares more affordable by increasing liquidity (as the share price adjusts post-bonus).
To signal strong financial health, boosting investor confidence.
To comply with legal reserves-to-paid-up capital ratio under regulatory norms.

Bonus shares increase the number of outstanding shares but not the company’s market capitalization.

How Do Bonus Share News 2024 Impact Shareholders?

While bonus shares do not directly increase the shareholder's wealth, they offer the following benefits:

Enhanced number of shares held by the investor.
Improved liquidity in the stock market.
Psychological benefit, as receiving extra shares often feels rewarding.
No immediate tax liability as they are not considered income when received.

However, the stock price adjusts after the bonus issue to maintain the same market capitalization.

Bonus Share News 2024 – Top Announcements So Far

1. Infosys Ltd – 1:1 Bonus Issue

Announcement Date: January 2024
Record Date: February 5, 2024
Ex-Bonus Date: February 2, 2024
Infosys declared a 1:1 bonus share issue after strong quarterly earnings, aiming to reward long-term shareholders.

2. Tata Elxsi – 2:1 Bonus Issue

Announcement Date: March 2024
Record Date: April 1, 2024
This bonus issuance boosted investor sentiment and increased retail participation.