Announcing the bonus shares at RIL's shareholder meet, its chairman Mukesh Ambani said, "On such an occasion (40th IPO anniversary) and in keeping with our founder's vision to share prosperity with all shareholders, the board has decided to recommend a bonus issue
in the ratio of 1: 1.
Corporate India seems to be showering shareholders with bonus - in 2015/16, 83 companies offered Rs 2,948 crore, through bonus issues
- a five-year high - and around 11 per cent higher the money disbursed in 2014/15.
A bonus issue
, just like a split, increases the number of shares without impacting the total market capitalisation.
The bonus issue
, approved by shareholders on March 29, will be distributed to all shareholders as of July 6 and is meant to improve liquidity.
The company's board of directors has recommended payment of a final dividend for the year ended 2010: a bonus issue
of two shares for every 10 shares held and a cash dividend of CNY3.
Speaking on this occasion, Atul Nishar, Chairman, Hexaware Technologies Limited, said "The bonus issue
is to reward shareholders on completion of 20 years.
The board proposed using the bonus issue
to raise the firm's capital to SR 900 million from SR 450 million,Al Qassim Cement announced in a statement after a board meeting.
The Dar Al-Arkan board proposed using the bonus issue
to raise the firm's capital to SR10.
Mishra (2005) documents the market behaviour around the bonus issue
announcement date for the forty-six stocks listed in the National Stock Exchange of India over the period from 1994 to 2004 using standard market model event study methodology covering a period of twenty days before and after the event.
The bonus issue
reared its head on Friday after it was revealed Post Office boss Adam Crozier received more than pounds 3 million in pay, pensions and incentives during the last financial year.
Analyst Peter Ashworth, of Charles Stanley in London, said the bonus issue
could draw attention to NWF and its strong growth.
YOUR coverage of the Sandwell refuse collectors' bonus issue
was crude and one-sided.