It’s raining bonus shares for investors
Over two dozen companies have announced bonus issue so far in 2017
It’s raining bonus shares for investors, with over two dozen companies announcing a bonus issue since the start of calendar year 2017 (CY17). Of these, nearly a dozen have announced the issue in the past one month. In comparison, 15 companies had made such an announcement in the corresponding period in the previous year, while 17 companies did so in the period under review in CY15.
Thus far in CY17, as many as 27 companies, including ICICI Bank, Petronet LNG, Godrej Consumer Products, Biocon and Wipro, have announced bonus issues. In May alone, as many as six companies rewarded their shareholders via this route, while the board of Munjal Auto Industries is scheduled to meet on May 22 and Shilpi Cable Technologies on May 28 to consider a bonus.
Among the prominent ones, the ICICI board recommended a bonus in the ratio of 1:10 i.e. one bonus 2011 2012 2013 2014 2015 2016 2017* share for every 10 shares held by investors. Godrej Consumer Products and Petronet LNG, too, announced a 1:1 bonus (one equity share for every one existing equity share). It is the maiden bonus issue for all these firms. In the information technology and pharma spaces, Wipro declared bonus shares in the ratio of 1:1 in April, while Biocon announced in the ratio of 2:1 (one equity share for every two exiting equity shares).
Market observers say bonus