3 stocks that declared bonus shares & stock split | Bonus and stock split news - YouTube

Hi, we regularly keep you updated about companies that announce any stock split or bonuses in recent times.

So, today we will tell you about 3 such companies whose bonus shares or stock split’ dates are near.

Before moving further, let’s understand the concept of bonus issue & stock split.

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 of a company. 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 post-bonus issue share price doesn’t need to become exactly 1/3rd.

Bonuses are issued to reward the shareholders and to encourage retail participation.

Now let us understand the concept of a stock split.

In a stock split, the company's board of directors split existing shares of the company into multiple shares, thereby increasing the total number of shares.

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

A stock split is different from bonus issues as the company does not issue new shares but splits existing shares into several 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 stock split.

In this case, the share price of the company should become half but as we mentioned while discussing bonus issues that it may not become exactly.

Generally, stock splits are done to make the stocks of a company more affordable, so that more people can buy the shares of the company.

Also ensuring that there is no liquidity issue in stocks.

Now let us talk about those 3 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, we will tell you about it in the end.

So, let's get started.

The first company is a consumer intelligence-driven mobile marketing & advertising company, Affle India ltd.

On August 26, the company announced a stock split of 5 for 1.

So, if you have 10 shares of the company, then you will have 50 shares of the company after the stock split.

The record date for the split is October 8 and the ex-split date is Oct 7.

Therefore, if you buy the shares of the company on or before 6th October then you will be eligible for the split.

This company’s PE ratio is 93.79. The debt to equity ratio is 0.33.

In terms of profitability, Return on Equity is 45.86%. The net profit margin is 26.13%.

In the last 3 years, the company's sales compounded at a rate of 46%.

The company's share price has grown by 86.86% in the last year.

The company got listed on 8th Aug 2019.

From its IPO price till now, the company’s share price increased by 621.85%.

Next is online catering and tickets service provider in Indian railways, IRCTC Ltd.

On August 12, the company announced a 5 for 1 stock split.

So, if you have 10 shares of the company, then you will have 50 shares of the company after the stock split.

The record date for the split is October 29.

The record date is the date before which you should have shares in your Demat account to be eligible for a stock split.

Generally, the transfer of shares takes 2 days after buying shares.

The company has a PE ratio of 225.46. Debt to equity ratio of 0 i.e, the company has no debt.

The company has a return on equity of 11.64%. The net profit margin of 20.66%.

In the last 5 years, the company's sales have decreased at a rate of -10.52%.

The company's share price has grown by 175.39% in the last year.

The company got listed on 14th Oct 2019.

From its IPO price till now, the company’s share price increased by 1082.5%.

The third company is SRF Ltd. which is engaged in the business of industry & specialty intermediate chemicals.

On August 31, the company announced a bonus issue of 4 for 1.

So, if you have 10 shares of the company, then you will have 50 shares of the company after the bonus issue.

The record date for the bonus is October 14 and the ex-split date is October 13.

Therefore, if you buy the shares of the company on or before 12th October then you will be eligible for the bonus.

The company has a PE ratio of 47.19, and a debt to equity ratio of 0.51.

The company has a return on equity of 20.32%, and a net profit margin of 14.26%.

In the last 5 years, the company's sales have compounded at a rate of 12.83%.

The company's share price has grown by 174.2% in the last year.

In the last 5 years, the company has given an annual return of 44.7%.

So, these were the companies that have declared a bonus issue or a stock split and whose record dates are near.

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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