Upcoming Events - Bonus and share split
📊 Bonus vs Stock Split — Stop
Confusing These Two
🔹 What is a Bonus Issue?
A company
gives free extra shares to existing shareholders.
- Example: 1:1 bonus → You get 1
extra share for every 1 you own
- Your total shares increase
- Share price drops proportionally
- Total investment value = No
change
👉 Think: “More pieces of the same
cake”
🔹 What is a Stock Split?
A company splits
existing shares into smaller units.
- Example: 1 → 2 split → 1 share
becomes 2 shares
- Face value reduces (₹10 → ₹5)
- Share price adjusts accordingly
- Total investment value = No
change
👉 Think: “Cutting the same cake
into smaller slices”
⚡ Key Differences (No Fluff)
|
Factor |
Bonus
Issue |
Stock
Split |
|
Shares
Increase |
Yes (new
shares issued) |
Yes
(existing shares divided) |
|
Face Value |
Same |
Reduced |
|
Company
Reserves |
Reduced |
No impact |
|
Purpose |
Reward
shareholders |
Improve
liquidity |
|
Psychological
Impact |
Feels like
“free gain” |
Makes
stock look cheaper |
💡 Reality Check (Most People Get This
Wrong)
- No real wealth is created
instantly
- Market adjusts price → your net
value stays same
- If you think bonus = profit →
you don’t understand basics
📈 Why Companies Do This
- Increase liquidity (more
buyers/sellers)
- Attract retail investors
- Signal confidence (especially
with bonus)
🔥 Quick Example
Suppose you
hold:
- 100 shares @ ₹1,000 = ₹1,00,000
After 1:1
Bonus:
- 200 shares @ ₹500 = ₹1,00,000
After 1:2
Split:
- 200 shares @ ₹500 = ₹1,00,000
👉 Same outcome. Different mechanism.
| Split Date | Company | Split Ratio |
|---|---|---|
| Apr 24, 2026 | Anlon Healthcare (ANLN) | 10:1 |
| Apr 24, 2026 | String Metaverse (STRN) | 10:1 |
| Apr 24, 2026 | VEGA Jewellers (VEGA) | 5:1 |
| Apr 27, 2026 | Trustwave Securities (TRUV) | 1:20 |
| Apr 30, 2026 | Invesco India Gold (INVS) | 100:1 |
| Apr 30, 2026 | Sanmit Infra (SANI) | 1:10 |
| May 08, 2026 | Alka India (ALKI) | 7:1 |
| May 15, 2026 | Biogen Pharmachem Industries (BIOG) | 1.167:1 |
About C K Mehta
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