Free shares of stock given to current shareholders, based upon the number of shares that a shareholder owns by converting free reserves or share premium account to equity capital without taking any consideration from investors.
While this stock action increases the number of shares owned, it does not increase the total value. This is due to the fact that since the total number of shares increases, the ratio of number of shares held to number of shares outstanding remains constant.
Bonus shares do not directly affect a company's performance.
Bonus issue has following major effects.
1. Share capital gets increased according to the bonus issue ratio. 2. Liquidity in the stock increases. 3. Effective Earnings per share, Book Value and other per share values stand reduced. 4. Markets take the action usually as a favorable act. 5. Market price gets adjusted on issue of bonus shares. 6. Accumulated profits get reduced.
Do not apply remember Jindal vijaynagar steel Ltd. Sajjan Jindal is famous for taking public money. Do not apply in power share. If any body wants than buy after IPO. It will avalaible 40 to 50 % discount price. Since Relaince power any power compnay not giving any profits to Retail investores. If Sajjan Jindal give in Rs. 30 to 35 than worth to apply.
To 48. Anita, Depend up on your service provider, it may vary 1 or 2 day of delivery of bonus share. You will get it in 1 or 2 day. Don't worry about bonus share, definately you will get.
If company is giving bonus there is no impact as such.Number of shares get doubled & EPS get halved.It is as good as stock split but the difference is the face value remains intact in bonus case otherwise there is no gain for investor.
hELLO friends. if company is giving the bonus, what is the impact on their EQUITY, as we knoe reliance ind has given 1:1 bonus so, no. of shares will be double in market, so, will equity also become double or not? if answer pl. provide regards...
The market is up..dont get excited and put your har earned money in Jindal IPO,just look at the background of ths group,13years ago they had come up with jindal vijayanagar ipo and public had lost money heavily,just lik telecom here the power story is comingto an end,just imagine at what rate will they sell the power,so just save money market will give appotunity to buy good niche comapany,why no expert talks about their P/E ratio before IPO,because they r working hand in glove...kyuki ganda hai par danda hai ye...BEWARE of these TULSIAAA and his false technical evaluation..just think how many times he has spoken truth.
Pre IPO placement done at Rs 100. Book value Rs.10.8. All major power companies trading around 3 times book value. So from that angle fair price would be around Rs.38. EPS at 4.5. So if they come at Rs.100, the P/E ratio would be around 22. From the P/E angle it seems ok.
same case with me and i called up ICICI customer care and they said the entire process of allocation of bonus shares will be done in 1 month. So by or before dec 27th you should see bonus shares credited.
Sorry I am posting in wrong forum but i am not able to get reply from anywhere.
I had 3 shares of Reliance industry. Now after the bonus share date, price is trading at half. But still in my ICICI demat account it shows only 3 shares.
Can someone tell when will i get the remaining 3 shares?