Announcement Date | Ex-Bonus Date | Bonus Ratio | Remarks |
---|---|---|---|
13 Aug, 1981 | - | 2:5 | For every 5 share he... |
What are Bonus Shares?
Bonus shares are additional shares distributed by a company to its existing shareholders without any extra cost. It’s how companies like Bharat Agri Fert & Realty Ltd reward investor trust and boost market liquidity while maintaining confidence in their financial strength.
Bonus shares are issued from the reserves or retained earnings of Bharat Agri Fert & Realty Ltd and serve as a reward to investors while enhancing liquidity in the market. At Pocketful, tracking bonus shares and corporate actions of Bharat Agri Fert & Realty Ltd is seamless for the users.
Key Features of Bonus Shares
- No Additional Cost: Shareholders receive bonus shares free of cost.
- Proportional Allocation: Shares are distributed in a fixed ratio, such as 1:1, meaning one bonus share for every existing share.
- Capitalization of Reserves: The issuance of bonus shares utilizes the Bharat Agri Fert & Realty Ltd’s retained earnings instead of cash outflows.
- No Change in Ownership Percentage: The overall ownership structure of Bharat Agri Fert & Realty Ltd remains the same, but the number of shares held increases.
Key Dates Related to Bonus Shares
- Announcement Date: The date on which the Bharat Agri Fert & Realty Ltd declares its decision to issue bonus shares.
- Record Date: The cut-off date to determine eligible shareholders who will receive bonus shares from Bharat Agri Fert & Realty Ltd.
- Ex-Bonus Date: Shares purchased after this date will not qualify for the bonus issue.
- Allotment Date: The date when the bonus shares of Bharat Agri Fert & Realty Ltd are credited to eligible shareholders.
Example of Bonus Shares
Suppose Bharat Agri Fert & Realty Ltd announces a 1:1 bonus issue on January 1, 2024. The key dates are:
- Announcement Date: January 1, 2024
- Ex-Bonus Date: January 10, 2024
- Record Date: January 11, 2024
- Allotment Date: January 20, 2024
If an investor holds 100 shares of Bharat Agri Fert & Realty Ltd, he will receive an additional 100 bonus shares of Bharat Agri Fert & Realty Ltd, bringing the total holdings to 200 shares—all without spending any extra money.
Benefits of Bonus Shares
Issuing bonus shares isn’t just about rewarding investors—it’s a strategic move. For Bharat Agri Fert & Realty Ltd, it signals:
- Increased Liquidity: The number of shares in the market increases, improving liquidity.
- Encourages Investment: Signals financial health and attracts more investors.
- Lower Share Price: As shares are distributed, the share price adjusts downward, making it affordable for new investors of Bharat Agri Fert & Realty Ltd.
- Tax Benefits: Bonus shares are not taxed at the time of issuance.
How Can I Track Bonus Shares of Bharat Agri Fert & Realty Ltd on Pocketful?
Tracking bonus shares of Bharat Agri Fert & Realty Ltd is simple with Pocketful:
- Visit the Corporate Actions section of the Bharat Agri Fert & Realty Ltd.
- Select the Bonus Shares tab to check declared and historical records.
Tax Implications of Bonus Shares in India
- No Tax on Receipt: Bonus shares are tax-free at the time of issuance.
- Capital Gains Tax: Upon selling the shares, gains are taxed based on the holding period.
- Long-Term vs Short-Term Tax Rates as of December 2024:
- Long-Term (holding period > 1 year): 12.5% tax if gains exceed ₹1,25,000.
- Short-Term (holding period ≤ 1 year): 20% tax.
Conclusion
Bonus shares represent more than just free rewards—they symbolize growth, confidence, and long-term value. For investors of Bharat Agri Fert & Realty Ltd, it highlights the company’s ability to manage reserves effectively while encouraging participation from new and existing shareholders.
With Pocketful, tracking bonus issues of Bharat Agri Fert & Realty Ltd is as easy as click, analyze, and invest. Stay informed, stay ahead, and let your investments grow alongside companies like Bharat Agri Fert & Realty Ltd that prioritize investor rewards.
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