Knowledge Base

When Will I Receive Bonus Shares?

Bonus shares are issued to shareholders based on an announced ratio (e.g., 1:1). You’ll receive them if you hold shares on the record date. Bonus shares are credited to your Demat account, usually within 15-20 days after the record date. The bonus shares are then credited to your account on the issuance date, usually a few weeks later. Keep track of these key dates to know when you’ll receive your bonus shares!

Why Has the Average Price Reduced After Receiving Bonus Shares?

When a company issues bonus shares, the total number of shares in circulation increases, but the overall value of your holdings remains the same. The average price per share reduces because the value of each share is adjusted to reflect the larger number of shares. For example, if you held 100 shares worth ₹100 each and received 100 bonus shares, the total value is still ₹10,000, but now divided by 200 shares, making the new average price ₹50. This reduction in price doesn’t impact the total value of your investment but reflects the adjustment due to the increased share count.

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