Following the footsteps of Tata Consultancy Services, Infosys Technologies and Satyam Computer Services, small and mid-cap companies have started announcing bonus shares to their stakeholders.
Half-a-dozen companies - Cadila Healthcare, Anuh Pharma, Alps Industries, Atlas Copco, K S Oils and KSL Industries - declared bonus shares to their shareholders over the last few days.
Growth in net profit over the last few years has helped Corporate India generate huge cash reserves. Now promoters are gifting part of the accumulated reserves to shareholders through bonus shares.
Atlas Copco, Cadila, Alps, Anuh and K S Oils declared one bonus equity share for every share held. KSL Industries declared bonus in the ratio of 1:5 (one share for every five share held).
Thus far, 34 companies have declared bonus shares in first four months of calendar 2006. Last year, 85 firms had issued bonus shares. Of these 34 companies, 12 firms made an announcement in April alone.
Information technology, pharmaceuticals, capital goods and metal companies are leading the chart in bonus announcements. Five companies from IT, four each from pharmaceuticals and capital goods sectors and three metal stocks declared bonus shares.
Of the 34 companies, 22 firms declared bonus shares in the ratio of 1:1; three declared in the ratio of 3:2 (three shares for two shares held) and two each declared in the ratio of 2:1 (two shares for one share held) and 1:2 (one share for two shares held), respectively.
TCS, Infosys Technologies, Satyam Computer Services, Sona Koyo Steering Systems, Kalpataru Power Systems, Grindwell Norton, Sterlite Industries, Torrent Pharma and Shah Alloys declared bonus shares in the ratio of 1:1.
Infotech Enterprises and I&L FS Venture announced bonus in ratio of 1:2, Cipla, National Peroxide and Mercator Lines in the ratio of 3:2 and Maxwell Industries in the ratio of 3:4.
In January, Mastek, Dabur India, Nova Petrochemicals, KLG Systel, Donear Industries and Fortune Financial Services issued bonus in the ratio of 1:1.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
