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List of Companies Issuing Bonus Shares/Stock Split in this Week

08 January 2022
3 minutes

Listed companies undertake corporate actions depending on the requirements. These are steps taken steps generally results in changes to the number of stocks and/or their price. 

A few such actions include going for a bonus issue, announcing a stock split, and paying dividends. 

In the next one week, there are a few companies that are going to issue bonus shares or go for a stock split shares.

A brief about what these corporate actions mean and a look at the companies going for the corporate actions has been mentioned later in the blog.

Here are 6 companies that will issue bonus shares, buy back shares or go for a stock split next week: 

IPCA Laboratories 

IPCA Laboratories has announced a stock split from Rs 2 to Rs 1. 

The ex-date for the split is 10 January, 2022. 

The record date is 11 January. 

Check out more about the company here: IPCA Laboratories

Axita Cotton

Axita Cotton has announced a 1:2 Bonus Issue. 

Ex-date for the stock split is 11 January. The record date is 12 January. 

Check out more about the company here: Axita Cotton

Ajanta Pharma

Ajanta Pharma has announced a buyback of shares. 

The ex date is 13 January. The record date is 14 January. 

Check out more about the company here: Ajanta Pharma

Indo Amines

Indo Amines has announced a stock split from Rs 10 to Rs 5. 

The ex-date is 13 January and record date is 15 January, 

Check out more about the company here: Indo Amines

James Warren Tea

James Warren Tea has announced a buyback of shares. 

The ex date is 13 January. The record date is 14 January. 

Check out more about the company here: James Warren Tea

Add-Shop ERetail Ltd

Add-Shop ERetail has announced a 7:10 bonus issue. 

The ex date is 13 January. The record date is 14 January. 

Check out more about the company here: Add-Shop ERetail Ltd

 

This was the list of companies that are going for a stock split, buy back shares or go for a  bonus issue next week. To read about the companies that are going to pay dividends next week, you may visit: Companies paying dividends soon.

We hope you found this update insightful.

Happy Investing! 

What is a bonus issue?

Under a bonus issue, a company issues free shares to its shareholders

For example, if a company decides to go for a 2:1 bonus issue, it will allot 2 additional shares (for free) for every 1 share held by a shareholder. 

However, the share price per share is reduced in similar proportions and the total value of investment remains the same. 

Think of it this way: You earlier had 1 share at a total value of Rs 60 and now you have 3 shares (in case of a 2:1 issue) each priced at Rs 20, giving a total value of Rs 60. 

As you can see from the above example, a company usually issues bonus shares so as to reduce the price of the shares and encourage retail participation.

Also Read: Difference Between Bonus Issue and Stock Split

What is a stock split?

When a company undertakes a stock split, that’s what literally happens!

Your stocks are split! 

Suppose you held 1 share of Rs 100 and a company announces a 1:5 stock split, you would now own 5 shares. 

But, the value of each share will now be Rs. 20. Hence, the total value remains the same – Rs 100. Like in the case of bonus issues, this move is also taken to encourage retail participation.

The prime difference between a bonus issue and a stock split is that in a bonus issue, the company issues new shares in the market whereas in-stock split, the existing shares are split.

Note: This article is only for educational and informational purposes. Investors are advised to invest in stocks after thorough research and based on their investment goals. 

To read the RA disclaimer, please click here.

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