A

PROJECT REPORT
ON
FIVE BONUS SHARE COMPANIES

Submitted To: Prof. Komal Sidhnani

Submitted By: Urvi Ganatra(0042)
Mahendi Jobanputra(0065)
Shubham Patel(0121)
Dipak Tiwari(0182)
Maulik Thakkar(0178)
Shubham Agarwal(0001)
INTRODUCTION
Bonus shares
SEBI (Disclosure & Investor Protection) Guidelines, 2000
Increases the total number of shares issued and owned
It does not increase the value of the company
Earnings Per Share of the stock will drop in proportion to the
new issue
REASONS FOR THE ISSUE

To capitalize the accumulated profits

High declaration of cash dividends is prohibited by the
Government
Lack of cash balance to declare dividends
To depict more realistic earning capacity of the company
Larsen & Toubro is a major technology, engineering,
construction, manufacturing and financial services
conglomerate, with global operations.
Bonus ratio 1:2
Ex bonus Record date Date 12/07/2017 13/07/2017 14/07/2017
date
13/07/2017 14/07/2017 Price 1160.23 1176 1171
The Company is engaged in the business of refining of crude
oil and marketing of petroleum products.
Bonus ratio 1:2

Ex bonus Record Date 12/07/2017 13/07/2017 15/07/2017

date date
13/07/2017 15/07/2017 Price 456 458.30 468.95
The leading global information technology, consulting and
business process services company announced to issue bonus
share on 13th June 2017.
Bonus ratio 1:1

Ex bonus Record Date 12/06/2017 13/06/2017 14/06/2017

date date
13/06/2017 14/06/2017 Price 262.20 258.85 256.90
It is an Indian multinational banking and financial services
company headquartered in Mumbai, Maharashtra, India.
Bonus ratio 1:10.

Ex bonus Record Date 19/06/2017 20/06/2017 21/06/2017

date date
20/06/2017 21/06/2017 Price 291.59 292.30 291
Gas (India) Limited (GAIL) (formerly known as Gas
Authority of India Limited) is the largest state-owned natural
gas processing and distribution company in India.
Bonus ratio 1:3.
Ex bonus Record date Date 08/03/2017 09/03/2017 11/03/2017
date
09/03/2017 11/03/2017 Price 394.20 378 376.50
EFFECT OF BONUS ON EPS &
SHARE PRICE
COMPANY STOCK STOCK EPS BAF ADJUSTED EPS
PRICE ON PRICE (EARNING PER (BONUS (EPS*BAF)
THE DAY AFTER SHARE) ADJUSTED
OF BONUS BONUS FACTOR)
ISSUE ISSUE

L&T 1175.10 1171.20 58.46 0.33 19.49

BPCL 458.55 456.80 61.31 0.33 20.44

WIPRO 259.00 256.10 33.57 0.5 16.79

ICICI BANK 292.45 291.10 16.83 0.09 1.53

GAIL 379.25 378.25 20.71 0.25 5.18

EFFECT OF BONUS ISSUE
Share capital gets increased according to the bonus issue ratio.
Liquidity in the stock increases.
Effective Earnings per share, Book Value and other per share
values stand reduced.
Markets take the action usually as a favourable act.
Accumulated profits get reduced.
A bonus issue is taken as a sign of the good health of the
company
THANK YOU