I see that Bonus impact will make the stock to trade lower as much as 50%. i.e.) after RIL bonus issue of 1:1, the stock will trade at 1000 rs (if its trading at 2000/share). pls correct me if iam wrong..
But i see Jiondal steel and power had announced a Bonus of 1:5 and everybody received their shares too but it didnt get fall but its surging like anything day by day...
I didnt understand the logic here.. without any additional investment, every Jindal steeel n power share holders will now have an asset of 1x5 amount..
reliance stck price shall surely reduce about 50 % ex bonus to its pre bonus price . reason being its market cap will double but the earnings per share will remain same. but also it depends on other factors at the time of bonus . if the business envyoronment improves at that time for any other reason then the share price shall factor it favourably and vice-versa.
Wishing you and your family
A VERY HAPPY AND PROSPERSOUS DIWALI
Yes, the share price after the due date for Bunus will definetely be going to be half and immediately after may very both ways a little.
In Share Split the Paid-up share capital remains the same bu the number of shares increase proportionately.
In Bonus the number of shares and Paid-up capital increases proportionately. Capital from Reserve gets transfered to the Paid-up Capital account of the company.
buy zenu info at current level target 42-45-47-49-51. and premium target 75 with sl of 35. view my all comment on zenu info all the targets have been acheived . Strictly follow the Stop loss. God Bless ..
what happened to the Bonus Information. It has been a month over. Whats the reason for postponding the Bonus shares. Will it happen any time now or only in next Board Meeting...?
Thanks in advance...
There just cannot be any postponment of bonus, will taken up in the next board meeting and then date will be fixed for issuance of the elegible shareholders for bonus.
the bonus isssue is recapitalisation of the reserves and nothing more. when your reserves are very high, u issue bonus shares. some how one gets to feel that they are getting something free. its not so. InJSPL a share trading at rs300/- plus will have low interest from participants, so try to increase the float for more interest. further it has one more issue that can you service the new shares with dividend?. this is a question which is more interesting. The board of JSPL feals that with every two months adding new generation of elec. will give them more revenue. by the time the cycle for the commodity, steel will be up, giving rise in EPS in the near term. so is the actual bonus. Similry with reliance the gas will give a fillip to the EPS and dollar devaluation may ensure increase in price of crude or worst scene is when the crude cycle moves up so that refining margins are better. so you can expect that within the time frame the bonus pays to the shareholder. Another point is when you see the rate of profit increase is more in the near term. i think this is the story of VST tillers.It profit rose by 38% yoy and now it is gearing for an uptick of at least 10% more so the bonus issue. It also helps the promotor, since the total shares held by him is huge and increase will increas his dividend income for sure.these are the most likely reasons for bonus issue by good companies
dear avijitb,
the market capitalisation is the price multiplied by the shares on any given date.
i have reffered to the recapitalisation of free reserve, which is different.
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