List Of Upcoming Bonus Shares And Stock Splits In May 2024
Introduction:
Amid soaring temperatures in most parts of India, the excitement among stock market investors is also rising. As the economy, on the whole, is doing well and the values of indices are constantly breaching their all-time high marks, several companies are preparing to reward their shareholders with bonus shares and enact stock splits in May 2024.
These corporate actions not only reflect the robust performance of these companies but also offer opportunities for investors to enhance their portfolios. Let’s delve into what bonus shares and stock splits entail and explore some notable companies gearing up for these actions in May 2024.
Understanding bonus shares and stock splits
Bonus shares are additional shares that a company distributes to its existing shareholders for free, based on their current holdings. While bonus shares do not result in any immediate monetary benefit to shareholders, they enhance liquidity and often indicate confidence in the company’s growth prospects.
On the other hand, a stock split involves dividing existing shares into multiple shares, effectively lowering the share price proportionately. It essentially increases the total number of outstanding shares without affecting the company’s market capitalisation. Stock splits also aim to make shares more affordable to cater to a wider range of investors and potentially increase liquidity and trading activity.
Upcoming bonus shares and stock splits in May 2024
Below are the upcoming bonus shares and stock splits in May 2024:
- Bhagiradha Chemicals Limited
Bhagiradha Chemicals Limited manufactures and distributes high-quality pesticides for industrial uses. Apart from the domestic market, the company exports its products to more than a dozen countries, including the United States of America (USA), the United Kingdom (UK), Brazil, and more.
The company’s Board of Directors has recently approved a stock split proposal in the ratio of 1:10. It means that each share of the company with a face value of Rs. 10 will be divided into ten shares having a face value of Re. 1 each. The company has set the record date for this corporate action as 2 May 2024.
- Canara Bank
Canara Bank is one of the leading PSU banks in India. It offers diverse banking products to its customers, including savings accounts, current accounts, fixed deposits, loans, etc. The company’s board has recently approved a stock split proposal in the ratio of 1:5. It means that each Canara Bank share would get split into five shares having a face value of Rs. 2 per share.
This will be the company’s maiden stock split action. The record date for the same has been set as 15 May 2024.
- Nidhi Granites Limited
Nidhi Granites Limited is the first company to announce the issuance of bonus shares in May 2024. The company initially operated in the granite blocks and tiles industry before diversifying into securities and other investments.
On 15 March 2024, the company’s board approved the issuance of bonus shares in the ratio of 1:1. The record date for the same has been set as 2 May 2024.
- Arham Technologies Limited
The next company on this list of upcoming bonus shares in May 2024 is Arham Technologies Limited. The company manufactures smart LED televisions in various screen sizes under the brand name “Starshine”.
The company’s Board has recently approved the proposal for the issuance of fully paid-up bonus shares at a ratio of 1:1. It means that one equity share will be issued against every fully paid-up equity share. The record date for the same is 3 May 2024.
- Inox Wind Limited
The fifth and final company on this list is Inox Wind Limited, which manufactures wind turbine generators in India. As per the company’s regulatory filing on 22 April 2024, the board has approved the issuance of bonus shares in the ratio of 3:1. The record date, however, is yet to be finalised.
To conclude
Investing in these stock splits and bonus shares may help you receive additional shares without any fresh investment. Additionally, you can gain from the potential price appreciation in the long term. However, make sure to conduct thorough research and evaluate factors such as the issuing company’s strengths, weaknesses, and fundamentals before making any investment decisions.
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