Bonus Shares

Bonus shares are additional shares granted to existing shareholders at no extra cost, based on the quantity of shares they currently hold. These shares represent the company's retained earnings, which are allocated as free shares instead of being issued as dividends.

List of upcoming bonus shares in 2026

Here are the companies that have recently announced the issuance of bonus share list 2026:

What are bonus shares?

Bonus shares are free additional shares a company issues to its existing shareholders in proportion to their current holdings. Instead of distributing excess profits as dividends, the company capitalises these reserves and rewards shareholders by expanding their shareholding while retaining funds for future growth.

Issuing bonus shares requires approval from the company’s Board of Directors. After approval, the additional shares are credited directly to shareholders’ demat accounts.

Bonus shares are issued in a fixed ratio, such as 3:1, which means you receive three additional shares for every one share you hold. For example, if you own 100 shares, you will receive 300 bonus shares at no extra cost.

Types of bonus shares

Bonus shares are generally categorised into two types: fully paid bonus shares and partially paid bonus shares.

Fully paid bonus shares are issued to shareholders who have already paid the complete value of their existing shares. When a company issues fully paid bonus shares, shareholders are not required to contribute any additional money. These shares are allotted in a fixed ratio based on existing holdings, allowing investors to receive extra shares without any extra financial commitment.

Partially paid bonus shares, in contrast, are issued against shares that are not fully paid up. In such cases, shareholders receive bonus shares but must pay the remaining amount due to gain full ownership. The company clearly specifies the outstanding payment and the timeline for completing it at the time of the bonus issue.

Both forms of bonus shares are intended to reward shareholders and strengthen investor confidence by increasing the number of shares held without altering the proportionate ownership in the company. However, investors should carefully review the terms of bonus issues, especially for partially paid bonus shares, to understand any future payment obligations and avoid unexpected financial impact.

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How to calculate bonus share percentage?

To understand a bonus issue, start by identifying the bonus ratio, which indicates how many additional shares you will receive for each existing share. For example, a 1:1 bonus ratio means that you will get one new share for every share you currently hold. Once the bonus ratio is clear, calculate the total number of shares you will own post-issue by multiplying your existing shares by the bonus ratio and then adding the result to your original holdings. For instance, if you own 100 shares and the company announces a 1:1 bonus, you will receive an additional 100 shares, making your new total 200. This process helps shareholders accurately understand the change in their shareholding after the bonus distribution.

Features of bonus shares

Bonus shares convert company reserves into share capital, avoiding cash payouts. They do not impact cash flow or net assets, only increasing share count while preserving liquidity and rewarding shareholders:

• Enhances the company's goodwill among shareholders and potential investors.
• The shareholding pattern remains unchanged as shares are distributed on a pro-rata basis.
• Share prices decrease significantly after a bonus issue, making them more accessible to retail investors.
• The increase in the number of outstanding shares improves stock liquidity.
• Bonus shares can only be issued after a minimum period of 12 months from the last issue.
• A maximum of two bonus issues is allowed within a five-year period.