Bonus Issue

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Bonus Issue

The free distribution of new shares to existing shareholders. A bonus issue is most common when the issuer does not wish to increase its dividend when it is expected to do so, especially when it may be cash poor. Instead of the increased dividend, shareholders receive the additional shares. Shareholders receive the bonus issue in proportion to the number of shares they already own. A bonus issue is also called a scrip issue. See also: Antidilution Provision.
References in periodicals archive ?
Dubai: Saudi Ceramic Co said it has recommended an increase in the company's capital through bonus shares.
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.
New Delhi [India], July 21 ( ANI ): While addressing shareholders at 40th annual general meeting (AGM) of Reliance Industries Chairman Mukesh Ambani announced a bonus issue of 1:1, which means that shareholders will get one bonus share for every one share held by an investor.
The board also approved a bonus share issue of 10 percent of the bank's share capital, totalling 154.
HM Treasury has revealed that ordinary investors will be offered a 5% discount on shares and bonus shares in a GBP2bn sale to mark the final stage of Lloyds Banking Group's (LSE:LLOY) return to the private sector, the Telegraph reported on Monday.
The bonus share offer will be capped at PS200, meaning no further incentive on shares worth more than PS2,000.
In March 2015, with the support of the TSB Board, the group announced it would pay any investors entitled to receive Bonus Shares the cash value of those bonus shares at the offer price.
Commercial Bank of Dubai, or CBD, announced that its board of directors approved a 50 per cent dividend for financial year 2014 for shareholders, with 25 per cent paid as cash and 25 per cent as bonus shares at its annual general meeting meeting held recently.
But Sports Direct released a statement yesterday saying that Ashley has decided he does not wish to be rewarded under the 2015 bonus share scheme, instead wishing for his employees to bene-fit fully.
The Newcastle United owner will be eligible for participation in the sports clothes retailer's 2015 bonus share scheme.
Riyadh, Safar 15, 1433, Jan 9, 2012, SPA - The Capital Market Authority (CMA) has approved the request of Yamama Saudi Cement Company Limited to increase its capital from SR 1,350,000,000 to SR 2,025,000,000 through issuing one bonus share for every two existing shares owned by the shareholders who are registered in the shareholders registry at the closing of trading on the day of the extraordinary general assembly.
5 billion to SR10 billion by issuing of bonus shares to its shareholders at the rate of one bonus share for each 3 shares held to the shareholders registered in the bank's shareholders register as of the end of trading on the EGM day which is scheduled for the first quarter of 2012 and which shall be announced in due course, the bank said in a statement.