International Journal For Multidisciplinary Research

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Call for Paper Volume 6 Issue 6 November-December 2024 Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

A Study on performance of companies issuing bonus shares

Author(s) Mrs.Vanisha D Patel, Dr. Chaitra K S, Dr. Sujith Kumar S H, Ms. Shilpa M
Country India
Abstract The study provides a succinct overview of the findings from an in-depth analysis of bonus shares performance among selected Indian companies over the past two years. The study focused on assessing under pricing trends, post-listing shares performance, sectoral variations, investor sentiment dynamics, and regulatory impacts.
The analysis revealed that many bonus shares experienced significant under pricing at their initial listing, particularly notable in high-demand sectors like technology.Shares performance varied across sectors, with companies like private and public sector shares performance over the long term. This suggests effective bonus shares .
Moreover, the study identified positive shifts in bonus shares ,companies encourage more retail investors participation in their stock by lowering the price per shares and adding liquidity. And provide an alternative to issuing a dividend payment for rewarding investors and finally they reflect that the company is in a financially sound position to keep growing and generating shareholder value .
In the study we have taken 5 shares which announced bonus last year and analzse the return we observed positive return in the sample taken.

Bonus shares represent a critical juncture in a lifecycle of company, its transition marking from private ownership to becoming a traded publicly entity. For companies, bonus shares offer opportunities to access capital markets, fund expansion initiatives, and strengthen market position. For investors, bonus shares provide avenues for portfolio diversification and potential capital appreciation, albeit with associated risks. Analyzing bonus shares performance helps in identifying key success factors and challenges faced by companies in navigating the complexities of the Indian capital market.
This study aims to comprehensively analyze and compare the bonus shares performance of the following 5 Indian companies:
Power finance
Power grid
Safari
Sonata
Berger paints

The objectives include evaluating their initial market reception, post-listing price movements, and strategic implications for stakeholders. By examining these bonus shares issues, we aim to discern trends, drivers of success, and challenges faced by companies across diverse sectors in Indian market.
Keywords Bonus Share, Return , SEBI
Field Business Administration
Published In Volume 6, Issue 5, September-October 2024
Published On 2024-10-25
Cite This A Study on performance of companies issuing bonus shares - Mrs.Vanisha D Patel, Dr. Chaitra K S, Dr. Sujith Kumar S H, Ms. Shilpa M - IJFMR Volume 6, Issue 5, September-October 2024. DOI 10.36948/ijfmr.2024.v06i05.29198
DOI https://doi.org/10.36948/ijfmr.2024.v06i05.29198
Short DOI https://doi.org/g8pnnz

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