What is a Bonus Share Issue and its record date and exdate
07/01/2025 Other Classes
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Description
A bonus issue of share which is also known as scrip or capitalization issue refers to providing shareholders with additional shares free of cost. It is a strategy used by companies to incentivize existing holders without distributing dividends in the form of cash.
A company issues bonus shares in a certain ratio on the basis of existing shares. For example, if a company issues bonus shares in the ratio of 1:2 then it means that the one share is issued for every 2 shares held by an existing shareholder. To find the number of bonus shares issued to any shareholder you can use the bonus issue ratio formula i.e. Bonus Issue Ratio = Number of bonus share/Number of existing shares.
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