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Four multibaggers will turn ex-bonus in the coming week's trading sessions from September 12 to September 16 ahead of their record date. These stocks are Bajaj Finserv, Bharat Electronics, G. K. P. Printing & Packaging, and AAA Technologies. While two shares will turn ex-bonus on September 13, the others will follow in the remaining week. These shares will also be in focus on stock exchanges following their bonus issue. Notably, these shares have given triple-digit returns in percentage terms in a span of two years.
Bajaj Finserv will turn ex-bonus on September 13 ahead of its record date on September 14.
The NBFC major has announced a bonus issue of 796,404,635 equity shares having a face value of Re 1 each fully paid up.
The ratio of bonus shares is 1:1, which means, the company will issue one bonus equity share for every existing fully paid-up equity share.
The company's free reserves required for implementing the bonus issue aggregate to over ₹79.64 crore.
As of March 31, 2022, the company's free reserves balance stood around ₹4,185.56 crore.
In its regulatory filing, Bajaj Finserv had stated that "14,417 equity shares of the face value of ₹5 rights entitlements are kept in abeyance. In case any claim is received and processes by the Company pre and post-issued, paid-up and subscribed capital will undergo change to that effect."
Giving rationale to the bonus issue, Bajaj Finserv on July 28 said, "The Company and its subsidiaries have grown significantly, in terms of business and performance, over the years. This is reflected in the share price of the Company, which touched a peak of Rs. 19,325 in October 2021. The price since then has hovered around ₹12,200. Currently the retail/individual shareholders comprise 98% of the total number of shareholders holding around 17.52% of paid-up value of shares. Amongst its peers. the share price of the Company is one of the highest while having one of the smallest capital bases. As and when the stock price rises further, it will be increasingly difficult for small potential shareholders to partake in the company's future."
Last week, on Friday, Bajaj Finserv shares settled at ₹17,202.65 apiece down by ₹178.80 or 1.03%. The company's market cap is around ₹2,74,006.47 crore.
In 2 years, Bajaj Finserv has skyrocketed by 180.5% on Dalal Street. The shares were near ₹6,132 apiece on September 10, 2020.
Bajaj Finserv is the holding company for the businesses dealing with financial services of Bajaj Group. The company serves millions of customers in the financial services space by providing solutions for asset acquisition through financing, asset protection through general insurance, family protection, and income protection in the form of life and health insurance, and retirement and savings solutions.
AAA Technologies is a Premier Independent Auditing and Consulting Company in the area of IS Audit, Information Security, IT Assurance & compliance, and IT Governance and rendering these services since the year 2000.
AAA Tech shares will turn ex-bonus on September 13 ahead of its record date on September 14.
The company's bonus shares are in the ratio of 1:2. That said, the company will issue 1 bonus equity share on 2 existing bonus shares fully paid-up.
On NSE, AAA shares closed at ₹135 apiece down by 1.46% on Friday.
AAA Tech debuted on NSE in October 2020. The shares have jumped by nearly 214% since then, as of now.
Government-owned Bharat Electronics (BEL) will turn ex-bonus on September 15 ahead of its record date September 16.
The company declared a bonus issue of equity shares in the ratio of 2:1. Simply put, an investor will receive two bonus equity shares for every one equity share held in the company.
On BSE, BEL shares closed at ₹328.15 apiece flat on Friday compared to the previous day's price level. The company's market cap is around ₹79,956.80 crore.
Bharat Electronics shares have climbed by nearly 223% in two years. The shares were below ₹102 on September 10, 2020.
Led by the government, Bharat Electronics primarily manufactures advanced electronic products for ground and aerospace applications. The company has a Navratna status by the Government of India.
G.K.P. Printing & Packaging is currently doing business in Liquor, Garment Exports, Retail, Steel Utensils, Pharmaceuticals, Playing Cards, Prints, Record Management, Engineering, Confectionery, and FMCG sector.
The company's stocks will turn ex-bonus on September 16 ahead of its record date on September 19.
The company will issue bonus equity shares in the ratio of 1:2. This means, that the company will issue one bonus share having a face value of ₹10 each on two existing equity shares having a face value of ₹10 each fully paid-up.
On BSE, the company's stock closed at ₹90.40 apiece down by 4.99%. The company's market cap is around ₹132.58 crore.
GKP shares have zoomed to a whopping over 624% in two years. The shares were below ₹12.5 on September 10, 2020.
Typically, a listed company distributes bonus shares on their equity shares to current shareholders free of charge. Shareholders will not need to pay any money for these shares issued as a bonus. Generally, bonus shares are issued by the company due to free reserves and surplus. Also, the move brings in additional fresh capital.
Among many benefits, bonus shares increase the number of outstanding equity shares. The action increases liquidity in equity shares on the stock exchanges. They also create an implicit value per equity share of the listed company. Further, bonus shares reduce per share ratios such as EPS, Book Value per share, etc. Also, they reduce share price in proportion to number of bonus shares issued, and further reduce free reserves and surplus of the Company.
Two dates are important for bonus issues namely 'record date' and 'ex-date'.
Record date generally is the cut-off date decided by the company to determine eligible shares for the benefit of bonus shares. On this date, shareholders who hold the listed company's shares in their Demat account will usually be eligible for a bonus issue by that said company.
Meanwhile, ex-bonus is the date ahead of the record date. Generally, an investor will have to buy one or two days before the ex-bonus date for being eligible for the bonus shares. This is because there are settlement options in buying and selling shares, bonds, exchange-traded funds, mutual funds, and others. These settlement options are T+1 and T+2.
Let's take an example, for instance, if you bought shares on Monday, this becomes your 'trading date'. Under the T+1 option, the shares you bought will get credited to your Demat account on Tuesday. Meanwhile, under the T+2 option, the shares you bought will get credited to your Demat account after two days, i.e. Wednesday. The case is similar to selling shares, but the credit will be done in your bank account linked with the Demat account.
The 'T' stands for trading day' or 'transaction date' which means the day the market-related instruments were bought or sold.