3 stocks that declared bonus shares | bonus shares latest news - YouTube

Hi, we inform you about the companies that announce any stock split or bonus recently.

So, today we will tell you about 4 such companies that have recently announced bonus shares or stock splits.

In a bonus issue, the existing shareholders of the company get free additional shares.

These additional shares are allotted based on the number of shares you hold on the bonus record date.

In a bonus issue, the company issues new shares in the market.

For example, in a 2:1 bonus issue, shareholders get 2 additional shares for each share they own.

Suppose, Investor A has 100 shares of Company X.

So after a 2:1 bonus, Investor A will have 100+200 bonus shares of Company X i.e. a total of 300 shares.

Overall, if Company X has a total of 1 crore shares in the market,

the total number of shares after the bonus will become 3 crores.

This impacts the share price.

If a company issues a 2:1 bonus, then its share price should also become 1/3rd.

Although it does not reduce to exactly 1/3rd

because the share price of any company depends on the demand and supply in the market.

Hence, the stock price may fluctuate.

So it is not necessary that the share price will become 1/3rd after the bonus.

Bonuses are issued to reward the shareholders.

Now let’s understand Stock Split.

In a stock split, the company's board of directors split existing shares of the company into multiple shares,

increasing the total number of shares.

The total market cap of the company doesn’t change after a stock split.

It is different from a bonus issue as the company does not issue new shares,

but divides its existing shares into multiple shares.

For example, in a 2:1 stock split or a 2 for 1 stock split, the number of shares of existing shareholders gets doubled.

If there were 1 crore shares in the company before the stock split,

then the company will have 2 crore shares in the market after the split.

In this case, the share price of the company should become half.

But as we mentioned during bonus issues that it may not become half.

Generally, stock splits are done to decrease the stock price to make it more affordable.

Hence more people can buy the shares, also there is no liquidity issue.

Now let us talk about those 4 companies which have recently announced a split or bonus.

We have taken only those companies whose market cap is more than 2000 crores.

We will cover the list in ascending order of market cap

i.e. for the company which has the highest market cap, will be told in the end.

So, let's start.

The first company is the real estate and infrastructure development company,

Mahindra Lifespace Developers Limited.

On July 28, the company announced a bonus issue of 2:1.

So, if you have 10 shares of the company, then you will have 30 shares of the company after the bonus issue.

The record date of this bonus is 15th September and the ex-bonus date is 14th September.

So, if you buy shares of the company on or before 13th September, then you will be eligible for the bonus.

This company is still at a loss and hence the PE ratio of the company is not available.

The debt to equity ratio of the company is 0.15.

Since the company is still at a loss, the return on equity of the company is -4.31%,

and the net profit margin is -42.99%.

In the last 5 years, the company's sales have decreased by a rate of -22.46%.

In the last year, the company's share price has grown by 258.78%.

In the last 5 years, the company has given a compounded annual return of 15.73%.

The second company is steel tubes, and pipe manufacturing company

Apollo Tricot Tubes Limited.

On August 6, the company announced a 1:1 bonus issue.

Hence, if you have 10 shares of the company, then you will have 20 shares of the company after the bonus issue.

The record date of this bonus is September 18 and the ex-bonus date is September 16.

So, if you buy the shares of the company on or before 15th September, then you will be eligible for the bonus.

The company has a PE ratio of 36.92, and a debt to equity ratio of 0.20.

In terms of profitability, the company has a return on equity of 41.69%,

and a net profit margin of 7.13%.

In the last 5 years, the company's sales have compounded at a rate of 144.98%.

In the last year, the company's share price has grown by 219.48%.

In the last 5 years, the company has given a compounded annual return of 97.87%.

The third company is a Kolkata-based electricity distribution company,

Calcutta Electric Supply Corporation or CESC Limited.

On June 16, the company announced a 10 for 1 ka stock split.

So, if you have 10 shares of the company, then you will have 100 shares of the company after the stock split.

The record date for the split is September 20 and the ex-split date is September 17.

Therefore, if you buy the shares of the company on or before 16th September then you will be eligible for the split.

The company has a PE ratio of 7.90, and a debt to equity ratio of 1.42.

The company has a return on equity of 13.67%, and a net profit margin of 11.60%.

In the last 5 years, the company's sales have declined by a rate of -0.81%.

In the last year, the company's share price has grown by 35.11%.

In the last 5 years, the company has given an annual return of 10.35%.

The fourth company is one of India's leading branded steel product manufacturers,

APL Apollo Tubes Limited.

On 6 August, the company announced a 1:1 bonus issue.

Hence, if you have 10 shares of the company, then you will have 20 shares of the company after the bonus issue.

The record date of this bonus is September 18 and the ex-bonus date is September 16.

Thus, if you buy the shares of the company on or before 15th September, then you will be eligible for the bonus.

In terms of valuation, the company has a PE ratio of 47.71, and a debt to equity ratio of 0.31.

In terms of profitability, the company has a return on equity of 23.61%, and a net profit margin of 4.80%.

In the last 5 years, the company's sales have compounded at the rate of 15.40%.

In the last year, the company's share price has grown by 288.72%.

In the last 5 years, the company has given a compounded annual return of 58.66%.

So, these were the companies that have declared a bonus issue or a stock split.

We would like to remind you that this video is for educational purposes only,

and is not a buy or sell recommendation of any kind.

We hope you liked today's video.

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