Hello investors, In this blog, I have shared TCS Bonus History and various terms that you should know related to bonus, like the meaning of bonus ratio, implications, and other various aspects.
Key Highlights of TCS Bonus History
TCS has a history of issuing bonus shares on three occasions:
July 28, 2006: Bonus ratio of 1:1
June 8, 2009: Bonus ratio of 1:1
April 19, 2018: Bonus ratio of 1:1
This means that for each share a shareholder held on the record date, they received an additional share in each instance.
TCS Bonus Share History Since 2006
| Announcement Date | Bonus Ratio | Record Date |
| 19-Apr-2018 | 1:1 | 02-Jun-2018 |
| 20-Apr-2009 | 1:1 | 17-Jun-2009 |
| 17-Apr-2006 | 1:1 | 31-Jul-2006 |
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What is Bonus Share?
Bonus shares or bonus issues are the rewards issued by the company to their existing shareholders with additional shares in the company. The company issues bonus shares free of charge (just like TCS Bonus History). These shares are issued from the company’s retained earnings or share premium account.
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Benefits of Bonus Share
Reward shareholders: Bonus shares are an alternative to or a supplement to dividend payouts.
Increase liquidity: As the bonus shares increase the number of shares in the market. By increasing the number of shares outstanding, bonus issues can improve the stock’s trading volume and liquidity.
Signal confidence: Issuing bonus shares can be seen as a sign of the company’s financial strength and future prospects. TCS Bonus History.
What is the Bonus Issue Ratio?
Companies announce bonus shares in a specific ratio, for example, a 2:1 bonus issue. This means that for every one share a shareholder currently holds, they will receive two additional shares as a bonus.
How Bonus Shares Work?
Let us understand with the help of an example how bonus shares work.
If an investor owns 100 shares in a company that announces a 3:1 bonus issue, they will receive 300 bonus shares (3 shares for every 1 share). This will increase their total holding to 400 shares (100 original + 300 bonus).
What is the Impact on Market Capitalization?
Since the company’s total value (market capitalization) remains the same, the share price will typically adjust downward to reflect the increased number of shares outstanding. In the above example, if the original share price was ₹100, the new share price would likely be around ₹75 (₹100 / (1 + 3)).
Frequently Asked Questions
When was the last time TCS issued bonus shares?
The last time TCS issued bonus shares was on April 19, 2018, with a 1:1 ratio. This means that for every share a shareholder held on the record date, they received an additional share.
What are the implications of bonus shares for TCS shareholders?
Bonus shares do not provide immediate cash flow to shareholders like dividends do. However, they can have implications, such as Increased number of shares, capital appreciation, and dilution of voting rights.
How does the ex-bonus date affect TCS bonus shares?
The ex-bonus date is the date after which new shareholders are not entitled to receive the bonus shares. If you purchase TCS shares after the ex-bonus date, you will not receive the bonus shares associated with that particular issue.
Can I sell bonus shares immediately?
Yes, you can sell the bonus shares on the stock exchange just like regular shares. You can sell them immediately as soon you receive bonus shares.
What is the difference between a bonus share and a stock split?
Bonus shares are issued from the company’s retained earnings or share premium account, whereas a stock split simply divides each existing share into a larger number of shares with a proportionately lower price.
How can I stay updated on potential future TCS bonus share announcements?
You can stay updated on potential future TCS bonus shares by monitoring the TCS Investor Relations website and following Financefundaa.com.Â
