Bonus Stocks: Britannia

 

https://www.britannia.co.in/

1978 - IPO - 100 shares - Rs.1500/-[(10+5)×100]

1983 - 2:5 Bonus - 140

1987 - 2:5 Bonus - 196

1989 - 1:2 Bonus - 294

1999 - 1:2 Bonus - 441

2010 - 5:1 Split - 2205

2018 - 1:1 Bonus - 4410

2018 - 2:1 Split - 8820

 

Price of One share as on 20.02.2025 - Rs.4824/-

 

Value of 8820 shares - Rs.4,25,47,680/-

 

28365 Bagger

 

CAGR since IPO - 24.37 %

 

Dividend amount for 2024 - Rs.6,48,270/-

 

Dividend Yield for 2024(on IPO amount)-43218 %

Bonus Stocks : INFOSYS

 

https://www.infosys.com/

1993 - IPO - 100 shares - Rs.9500/-

1994 - 1:1 bonus - 200

1997 - 1:1 bonus - 400

1999 - 1:1 bonus - 800

2000 - 2:1 split - 1600

2004 - 3:1 bonus - 6400

2006 - 1:1 bonus - 12800

2014 - 1:1 bonus - 25600

2015 - 1:1 bonus - 51200

2018 - 1:1 bonus - 102400

 

100 shares become 102400 shares

 

Value as on 17.02.2025 - Rs.18,87,23,200/-

 

19856 bagger since IPO

 

CAGR 36.24 %

 

Dividend yield for 2024 - 30181 %

Bonus Stock : Asian Paints

 

https://www.asianpaints.com/

1982-IPO-100 shares-Rs.2300/-(10+13)

1985 - 3:5 bonus - 160

1987 - 1:2 bonus - 240

1992 - 3:5 bonus - 384

1996 - 1:1 bonus - 768

2000 - 3:5 bonus - 1227

2003 - 1:2 bonus - 1840

2013 - 10:1 split - 18400

 

Value of one share as on 25.02.2025 - Rs.2224/-

 

Value of 18400 shares - Rs.4 09,21,600-

 

17792 bagger since IPO (CAGR 26.24%)

 

Dividend for 2024 - Rs.6,12,720/-

 

Dividend yield on IPO amount for 2024 - 26640%

Bonus History: HDFC - HDFC Bank

 

https://www.hdfcbank.com/

HDFC Ltd

1977 - IPO - One share - Rs.100/-

1999 - 10:1 Split - 10 shares

2002 - 1:1 Bonus - 20 shares

2010 - 5:1 Split - 100 shares

 

And the story continues with HDFC Bank

 

2023 - 42:25 Merger - 168 shares

Current Share price of HDFC Bank (25th Feb 2025) : Rs.1682 

Current value Rs.282576/-

 

2825 bagger since 1977 IPO

 

Current Dividend Yield on original investment 3276 %

 

Bonus History: Castrol India

https://www.castrol.com/en_in/india/home.html

IPO - 100 shares - Rs.1900/-

1990 - 3:5 bonus - 160

1992 - 3:5 bonus - 256

1994 - 1:1 bonus - 512

1995 - 3:5 bonus - 819

1999 - 1:1 bonus - 1638

2010 - 1:1 bonus - 3276

2012 - 1:1 bonus - 6552

2017 - 1:1 bonus - 13104

 

Castrol share price Rs.217/-

 

Value of 13104 shares Rs.28,43,568

 

1496 bagger since IPO

 

Dividend for 2024 Rs.7.5 × 13104 = Rs.98280/- last year

 

Bonus History : SUN PHARMA

 

https://sunpharma.com/

1994 - 100 shares – Issue Price = Rs.150 (10+140premium) - Rs.15000/-

2000 - 2:1 bonus - 300

2002 - 1:1 split - 600

2004 - 1:1 bonus - 1200

2010 - 5:1 split - 6000

2013 - 1:1 bonus - 12000

 

Share price of Sun Pharma on 25th Feb 2025: Rs.1613

Value of 12000 shares : Rs.1.93 crore

 

1290 bagger

Bonus Shares: ASTRAL

 

https://astralltd.com/

2007 - IPO - 100 shares - Rs.11500/-

2010 - 1:1 split - 200

2013 - 1:5:1split - 500

2014 - 1:1 split - 1000

2019 - 1:4 bonus - 1250

2021 - 1:3 bonus - 1666

2023 - 1:3 bonus - 2221

Current Price of Astral (25th Feb 2025) : Rs.1389. 

Value of 2221 shares Rs.30.85 Lakhs-

 

268 bagger

 

38.56% CAGR

Bonus History: INFO EDGE

 

https://www.infoedge.in/

2006 - IPO - 100 shares- Rs.32000/-

 

2010 - bonus - 1:1 - 200 shares

 

2012 - bonus - 1:1- 400 shares

 

Current price of Infoedge (25th Feb 2025): Rs.7323

Today's value - Rs.29.29 Lakhs

 

30 % CAGR since IPO

 

91 bagger

Bonus History : Sundram Fasteners

 

https://www.sundram.com/

1977 - 100 shares

1978 - 2:5 bonus - 140

1981 - 2:3 bonus - 232

1988 - 3:5 bonus - 370

1995 - 1:1 bonus - 740

2003 - 10:1 split - 7400

2006 - 1:1 bonus - 14800

 

Current Price of Sundram Fasteners (25th Feb 2025) : Rs.972

Current value Rs 1.44 crore

Bonus Stocks: ITC Ltd

 

https://www.itcportal.com/

1976 - IPO - 100 Shares of Face Value 10 with Premium of Rs.5 - Rs.1500/-

1978 - 1:5 bonus - 120

1980 - 1:5 bonus - 144

1989 - 1:1 bonus - 288

1991 - 3:5 bonus - 459

1994 - 1:1 bonus - 918

2005 - 1:2 bonus - 1377

2005 - 10:1 split - 13770

2010 - 1:1 bonus - 27540

2016 - 1:2 bonus - 41310

 6th Jan 2025   - 1:10 demerger ITC Hotels - 4131

 

 

Dividend yield on initial investment - Rs.5.68 lakh

 

11126 bagger through capital appreciation .

 

378 bagger through 2024 dividend (37866 % dividend yield)

 

Price of ITC Shares (25th Feb 2025) Rs. 404

Value of 41310 shares - Rs.1.67 crore

Price of ITC Hotels (25th Feb 2025) Rs.161

Value of 4131 ITC Hotels Shares : Rs.6.65 Lakhs

Bonus History : CIPLA

 

https://www.cipla.com/

1979 - 100 shares - Rs.10000/-

1980 - 1:1 bonus - 200

1986 - 1:1 bonus - 400

1988 - 1:1 bonus - 800

1992 - 1:1 bonus - 1600

1994 - 10:1 split - 16000

1994 - 5:1 bonus - 96000

1999 - 2:1 bonus - 288000

2004 - 5:1 split - 1440000

2006 - 3:2 bonus - 3600000

 

Current Price of Cipla (on 25th Feb 2025) : Rs.1,463

Current value Rs.526,68,00,000 (Rs.526.68 Crores)

Bonus History : Sundaram FInance

 

https://www.sundaramfinance.in/

1975 - 100 shares

1976 - 1:2 bonus - 150

1978 - 1:3 bonus - 200

1982 - 1:2 bonus - 300

1986 - 1:1 bonus - 600

1991 - 1:1 bonus - 1200

1995 - 1:1 bonus - 2400

2008 - 1:1 bonus - 4800

2012 - 1:1 bonus - 9600

2018 - 1:1 demerger - Sundaram Finance Holdings - 9600

 

Sundaram Finance Share Price as on 25th Feb 2025 : Rs.4479

Value of Sundaram Finance Rs 4,29,98,400 (Rs.4.29 crore)

 

Sundaram Finance Holding Share price as on 25th Feb 2025: Rs. 258

Value of Sundaram Finance Holdings: Rs.24,76,800 (24.76 Lakhs)

Bonus History - ANUH PHARMA

https://www.anuhpharma.com/

1993 - 100 shares

1994 - 3:1 bonus - 400

1999 - 1:1 bonus - 800

2006 - 1:1 bonus - 1600

2006 - 2:1 split - 3200

2010 - 2:1 bonus - 9600

2015 - 2:1 bonus - 28800

2020 - 1:1 bonus - 57600

Current Price of Anuh Pharma: Rs.160 - as on 25th Feb 2025

Curren Value : Rs.92,16,000 

Bonus History - L & T:

L&T:

https://www.larsentoubro.com/

1963 - 200 shares

1964 - 1:7 bonus - 228

1969 - 1:10 bonus - 250

1973 - 1:3 bonus - 333

1976 - 1:2 bonus - 499

1981 - 3:5 bonus - 800

1986 - 3:5 bonus - 1280

2004 - demerger

For every 10 shares of L & T share (Face Value Rs.10), 

5 shares L & T share (Face Value Rs.2) 

and 

4 shares of  Ultratech Cement share (Face Value: Rs.10)

So, L&T

2004 - 640

2006 - 1:1 bonus - 1280

2008 - 1:1 bonus - 2560

2013 - 1:2 bonus - 3840

2017 - 1:2 bonus - 5760

 

Current Price of L&T Shares (25th Feb 2025) - Rs.3225

Current value of 5760 L & T shares - Rs.1,85,76,000

 

Current Price of Ultratech Cement Shares : Rs. 10964

Current value of 512 Ultratech Cement shares: Rs.56,13,568/-

2016 – Bonus-o-mania:

Corporate benefits are one of the main attraction for investing in stocks / shares. There are a number of ways corporate benefits are bestowed upon the share holders : in the form of dividends / rights issue and bonus shares. Among then, Bonus shares excites the investors the most - Investors / share holders get free shares! 

Though investors feel psychologically happy since they get something free, there is a deeper logic behind the concept of Bonus  : exponential growth in number of shares being allotted.

For instance if you had bought 100 shares of a company, and if this company declares 1:1 bonus once in 3 years, then by 15 years you would have got 5 bonuses and the number of shares would have ‘multiplied’ to 3200 shares. (100:100, 200:200, 400:400, 800:800, 1600:1600 = 3200). That's exponential growth!

Bonus shares are allotted only to existing share holders in a prefixed ratio, say 1:1 or 1:2 etc. And even those who have not invested in the shares, if they buy it before the ‘cut off’ or ‘record date’, then such share holders are also entitled to receive the bonus shares.

Bonus shares are usually declared occasionally. But in current year (2016), it seems to be a frequent phenomenon. Good companies like Berger paints (2:5), Hatsun Agro (2:5), BPCL (1:1), ITC (1:2), Tide water (1:1), Mind tree (1:1) have declared bonuses. And the latest one to join the bandwagon is HPCL which has declared bonus in the ratio of 2 share for every one share held (2:1).

For every event to happen, a trigger is required. The same is true with Bonus shares too:

• The trigger behind the series of bonus announcements seems to be the decision of the government to tax dividends. Yes. Those investors who receive dividends of more than 10 Lakhs from a single company will have to pay a dividend tax of 10%.
• Obviously these BIG are often taken by BIG investors (primarily promoters themselves).
• Probably ‘they’ decided, why declare dividend and pay tax. Better allot bonus shares and hold it. In the first place, you don't pay dividend tax. And secondly, you need not reinvest the funds - it is already reinvested in the form of bonus shares.

By allotting bonus shares,

• In the first place, you don't pay dividend tax.
• There is no tax on allotment of bonus shares.
• Investors need not search for avenues to reinvest the funds - it is already reinvested in the form of bonus shares.
• Bonus shares sold after being held for an year becomes eligible for long term capital gains which is tax free.
• And investors who want funds / similar to dividends have the flexibility of selling their existing holdings / long term holding and enjoy them tax free.

Hence don’t be surprised if more and more companies declare bonus shares. They are part of prudent tax planning. Without questioning much, choose the right company, invest in it and enjoy the bonus-o-mania.

ITC declares 1:2 Bonus

ITC, one of the profitable Indian company was started as Imperial Tobacco Company of India - way back in 1910. Its name was changed to the present "Indian Tobacco Company" or ITC in 1970. From the name it is obvious that ITC deals with tobacco. But ITC has been in the business of hotels, papers since 1972. Recently they forayed a big time into FMCG business under the brand Sunfeast and Aashirwad.

ITC declared bonus shares for existing share holders on 20th May 2016. Allotment of Bonus shares is one of the way companies reward their investors for their loyalty and trust reposed on them.

If someone buys 1000 shares of ITC today, it means he/she would get bonus shares of 500. Hence his total holdings become 1500. But the fact is stock prices fall after the bonus issuance. For instance, ITC is quoting today (23rd May 2016, 1.52pm) at Rs.346. The total investment would be (1000*346) Rs.3,46,000. Post bonus the share prices would get readjusted to around Rs.230. If you see the total value of the 1500 shares @ Rs.230, the value would again be Rs,3,46,000. But many investors panic (rather let down) when they see the price slide from Rs.346/sh to Rs.230/sh.

But over a long period BONUS shares works wonders.

For instance, in 1976, ITC shares were allotted at Rs.15 per share. Till today, ITC has rewarded its share holders with eight bonuses and one stock split. This is apart from regular dividends year on year.

Rs. 7500 invested in 1976 (at Rs.15 a share) would have got 500 shares. And if someone held these shares till date, today the shares would have multiplied to 2,07,360 Shares. At today's market price of Rs.346, the value of these ITC shares is Rs.7,17,46,560. (Rs Seven Crore Seventeen Lakhs). That's close to 10,000 times (9566 times to be precise)! The annual returns work out to 25.75%.

Thought it may not have been possible for everyone to invest in 1976. Even those who invested in Jan 2000 stand to gain phenomenally. 5000 shares bought for Rs.1,15,650, would have multiplied to to 1,50,000 Shares. At todays price of Rs.346, this would be worth Rs.5,19,00,000 (Rs.Five Crore Nineteen Lakhs Only!)

Apart from this, ITC has declared dividend at Rs.8.50 per share (850%). For those who invested in 2000, the dividend works out to Rs.12,75,000 (12.75 Lakhs).

Thought this would look very tempting, the secrete lies in holding this share for long period. Fro instance from 1976 to 2016 or from 2000 to 2016. Anything short of this might not reward the investors.

So stop worrying about stock price post bonus or your missed out to invest in 1976 or 2000. Invest today and stand to gain phenomenally in the decades to come.

Basic Facts about Bonus Shares:

Investing in stock market has two main objectives : Growing your capital and regular income in form of dividend. Growing capital may happen by simple appreciation of share price or by a combination of share price growth and addition of free shares in the form of bonus.

Though many investors get lured by 'FREE' shares, post bonus the share price falls. For instance if the share price is Rs.100 and the company issued 1:1 bonus, then post bonus the number of sharesee increases to 200 and the share price falls to Rs.50. Thus making the total value of investment the same.

Once investors realize this, they feel there is no meaning in investing for the sake of bonus. They feel it makes no economic sense. This could be due to misconception of facts behind Bonus.

Bonus is:

• Non cash transaction. 
• It is issued for free to existing share holders in a ratio like 1:1 or 1:2 etc
• Post bonus, the number of shares increases - thus increasing the liquidity.
• Increase in liquidity coupled with lower share price - makes it affordable for more number of investors to buy these shares. Thus increasing the share holder base.
• More number of share holders results in more public scrutiny and improved price discovery.
• Inspite of any number of bonus shares, the face value of the shares remain constant. Unless the shares are split (when face value of the shares are split), the face value remains constant.
• And if the company maintains constant dividend or improved dividend in percentage terms, then the share holder stands to gain immensely. And the dividend yield ratio increases since the same percentage dividend on reduced share price (post bonus) makes it even more attractive.

But all these factors work only in the long term - atleast in 3 to 5 year term and beyond. Short term investors need to be satisfied with the short term surge in stock price due to bonus announcements.