These companies are giving bonus shares in September 2023; do you own them?

Here are five companies that will give bonus shares in September 2023

When a company experiences an unexpected surplus in profit during a fiscal year or a quarter, it allocates this profit to its shareholders as dividends. However, situations can arise where companies are unable to distribute dividends despite achieving favourable profits. This can be attributed to issues like insufficient cash flow or internal factors.

In such circumstances, companies take an alternative approach by issuing additional shares to their shareholders without requiring any financial contribution from them. These additional shares are referred to as bonus shares. They are provided to the existing shareholders of the company in a predetermined ratio based on their current shareholdings.

To give you an example, consider a scenario where a company declares a 1:2 bonus share ratio. Under this arrangement, for every two shares an existing shareholder possesses, they would receive one bonus share. So if you own 2,000 shares in such a company, you would obtain an additional 4,000 shares following the specified record date.

What are the benefits of investing in bonus shares? 
Opting to invest in a company that announces bonus shares enables investors to acquire extra shares without incurring additional expenses. Consequently, bonus shares increase an investor's ownership stake in the company, making them eligible for higher dividends in the future. Moreover, the issuance of bonus shares amplifies the total number of outstanding company shares, thus enhancing the overall liquidity of the company's stocks.

Do remember that receiving bonus shares does not attract any tax liability since they do not contribute to an individual's direct income. This helpful feature allows long-term investors to achieve heightened returns without necessitating an increase in their initial investment amount.

Here are five companies that will give bonus shares in September 2023

GNA Axles Limited
GNA Axles Limited specialises in the production of automotive transmission components, catering to commercial vehicles, off-highway vehicles, and non-flanged shafts. The company's manufacturing facilities are situated in Hoshiarpur and Kapurthala, Punjab.

As of August 31, 2023, the market capitalisation of GNA Axles Ltd stood at Rs 2,208 crore. The company's shares closed trading at Rs 1029 per share, up by 3.65 per cent. GNA Axles Ltd will issue bonus shares in a 1:1 ratio to its existing shareholders by the record date of September 2, 2023.

Vivanta Industries Limited 
Vivanta Industries Limited is engaged in offering consulting and turn-key services for commercial, agro, and pre-fabricated factories. Additionally, it provides consultancy services for land acquisition, encompassing tasks like title searches and tenancy clearances.

As of August 31, 2023, Vivanta Industries Ltd boasted a market cap of Rs 59.8 crore. This penny stock closed at Rs 5.98, down by 0.99 per cent. Priced below Rs 6, the scrip is an appealing penny stock opportunity. By purchasing these shares before the record date of September 5, 2023, investors have the potential to secure bonus shares in a 1:4 ratio.

JTL Industries Limited 
JTL Industries Limited stands as a prominent manufacturer of Electric Resistance Welded (ERW) steel pipes and tubes within India. Its products find application in diverse sectors, including automotive engineering and various industries.

As of August 31, 2023, JTL Industries Ltd commanded a market capitalisation of Rs 3,443 crore. On Thursday, the stoc k closed at Rs 408, up by 0.80 per cent. The company has revealed plans for a 1:1 bonus share distribution for its shareholders, slated for the record date of September 7, 2023.

Power Grid Corporation of India Limited
The Power Grid Corporation of India Limited is a government-owned entity responsible for the bulk transmission of electricity across different states in India. It plays a pivotal role in real-time inter-state transmission system (ISTS) monitoring.

As of August 31, 2023, the company's current market capitalization is Rs 1,70,620 crore. Today, the scrip closed at Rs 245, down by 1.1 per cent. A bonus share issuance in the ratio of 1:3 has been declared for the company's shareholders, with the record date set as September 12, 2023.

Lancer Container Lines Limited 
Lancer Container Lines Limited offers comprehensive logistics and integrated shipping solutions for coastal water transport through container ships. Its operational reach spans more than 86 ports worldwide, along with 36 Inland Container Depots (ICDs) in India.

Shares of Lancer Container Lines Limited closed at Rs 256, up by 1.21 per cent. Interested investors can secure these shares before the record date of September 22, 2023, to become eligible for bonus shares in a 2:1 ratio.

Disclaimer: The article is for informational purposes only and not investment advice.