Bonus issue
Free extra shares a company gives existing shareholders from its reserves.
A bonus issue gives you free extra shares from the company’s reserves. In a 1:1 bonus, you get one new share for each you hold, and the price halves to match, so your holding’s value doesn’t change. Unlike a stock split, face value stays the same. See our corporate actions explainer.
Questions people ask
What is a bonus issue?
A bonus issue is when a company gives its existing shareholders extra shares for free, in a fixed ratio, using its reserves. The share price adjusts down in proportion.
Do bonus shares make me richer?
Not on the day. You hold more shares, but each is priced lower, so the total value is about the same.
When are bonus shares credited?
To shareholders on the record date. Under a SEBI circular for bonuses announced from 1 October 2024, the new shares become tradable two working days after the record date.
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