How to invest in Bonus Shares?

Here’s how you can invest in Bonus shares - Go to the Tickertape Stock Screener Select the "Bonus" stocks. From the Bonus shares, analyse and sort the Bonus shares using over 200+ filters - including valuation ratios, financials, technical indicators, and more - based on your investment thesis. Review the filtered bonus share list, and identify stocks that best align with your risk appetite, return expectations, and investment goals. Once you've shortlisted the stocks, click ‘Place Order’ to invest in your preferred Bonus shares. Disclaimer: Please do your own research or consult your financial advisor before investing.

How to choose bonus shares for investing?

When evaluating bonus shares, investors often examine the company’s profitability record, reserves and surplus available for capitalisation, and past history of bonus issuances. While tracking upcoming bonus shares, it is important to assess the industry outlook, dividend consistency, balance sheet strength, and whether the bonus issue aligns with other corporate actions such as stock splits or rights issues. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

Do Bonus Shares offer regular dividends?

Bonus shares themselves are not a guarantee of dividends. Whether a shareholder receives regular dividends depends on the issuing company’s dividend policy and profitability after the bonus issue. Disclaimer: The latest data on dividends is derived from Tickertape Stock Screener.

What are the factors affecting Bonus Shares prices?

Corporate Announcements: Bonus issue declarations often influence demand as they signal confidence from the company. Earnings Performance: Strong profits and reserves that justify bonus issuance can impact investor sentiment. Dilution Effect: Although the overall market capitalization remains unchanged, the increase in outstanding shares can influence short-term price adjustments. Market Sentiment: Perception that bonus shares improve liquidity and accessibility may drive price movements. Dividend History: Companies that pair bonus issues with consistent dividend policies often see stronger price responses. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

What is the difference between upcoming stock split and bonus share?

A stock split increases the number of shares by reducing the face value, keeping the total value the same. A bonus share is an additional share issued free to existing shareholders from the company's reserves, increasing share count without changing the face value. Both dilute price proportionally.

List of Bonus Share Stocks in India (2026)

A bonus share issuance is a corporate action where a company distributes additional shares to existing shareholders from its accumulated reserves, at no additional cost. While it results in an increased share count and a proportional price adjustment, understanding its underlying mechanics and impact on shareholder value is essential for informed decision-making.

Top Bonus Shares in 2026

Bonus Stock Screener

Bonus Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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Showing 1 - 5 of 5 results

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	NameStocks (5)↓	↓Sub-SectorSub-Sector↓	↓Market CapMarket Cap↓	↓Close PriceClose Price↓	↓PE RatioPE Ratio↓	↓1D Return1D Return↓	↓1M Return1M Return↓	↓6M Return6M Return↓	↓1Y Return1Y Return↓	↓PB RatioPB Ratio↓	↓Return on EquityReturn on Equity↓	↓ROCEROCE↓	↓Dividend YieldDiv Yield↓	↓Debt to EquityDebt to Equity↓	↓Volatility vs NiftyVolatility vs Nifty↓
1.	Bajaj Finance Ltd BAJFINANCE	Consumer FinanceConsumer Finance	5,17,324.275,17,324.27	830.55830.55	31.0931.09	-0.20-0.20	-18.14-18.14	-17.48-17.48	-4.31-4.31	5.235.23	18.9518.95	5.185.18	0.670.67	3.653.65	2.002.00
2.	Shilchar Technologies Ltd SHILCTECH	Electrical Components & EquipmentsElectrical Components & Equipments	4,286.644,286.64	3,977.303,977.30	29.1929.19	2.182.18	1.861.86	-4.90-4.90	-4.90-4.90	12.3612.36	52.7852.78	56.3956.39	0.330.33	0.000.00	4.644.64
3.	V-mart Retail Ltd VMART	Retail - Department StoresRetail - Department Stores	4,045.224,045.22	510.20510.20	88.3888.38	0.220.22	-11.57-11.57	-30.72-30.72	-29.26-29.26	4.994.99	5.885.88	14.2314.23	--	0.970.97	2.722.72
4.	Investment & Precision Castings Ltd INVPRECQ	Auto PartsAuto Parts	516.60516.60	521.85521.85	85.3985.39	1.021.02	-3.69-3.69	15.1915.19	73.8173.81	5.665.66	6.846.84	14.4814.48	0.050.05	0.710.71	3.333.33
5.	Shalibhadra Finance Ltd SAHLIBHFI	Diversified FinancialsDiversified Financials	277.04277.04	87.9987.99	17.3117.31	-1.90-1.90	-8.49-8.49	-25.53-25.53	-31.68-31.68	1.801.80	12.7512.75	12.5812.58	0.110.11	0.240.24	3.163.16

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Bonus Shares, based on publicly available information and is sorted by market cap.

What are Bonus Shares?

Bonus shares are free additional shares that a company issues to its existing shareholders. Instead of paying dividends in cash, the company rewards shareholders by giving them extra shares in proportion to the ones they already hold.

For example, if a company announces a 2:1 bonus issue of shares, it means every shareholder will receive 2 extra shares for every 1 share owned.

Overview of the Top Bonus Stocks

Shalibhadra Finance Ltd

Shalibhadra Finance Ltd is a non-banking financial company (NBFC) primarily engaged in providing two-wheeler, auto, and agriculture-based loans in rural and semi-urban India. The company focuses on financing lower-income groups, promoting financial inclusion across underbanked regions.

Investment & Precision Castings Ltd

Investment & Precision Castings Ltd specialises in manufacturing investment cast components for industries such as aerospace, automotive, defense, and engineering. Using the lost-wax casting process, the company delivers high-quality, complex metal parts with precision for both domestic and global markets.

Bajaj Finance Ltd

Bajaj Finance Ltd, a leading NBFC in India, offers a wide range of financial products including consumer loans, SME lending, commercial financing, and wealth management. Known for its innovative digital lending model, it operates under the broader Bajaj Finserv group.

Shilchar Technologies Ltd

Shilchar Technologies Ltd manufactures transformers and other electrical equipment, catering to sectors such as power generation, transmission, and renewable energy. The company supplies both domestic and export markets, playing a key role in supporting infrastructure and energy development.

V-mart Retail Ltd

V-Mart Retail Ltd is a value fashion and lifestyle retail chain targeting tier-II and tier-III cities across India. Offering affordable apparel, accessories, and general merchandise, V-Mart serves middle-income consumers with a strong presence in underserved regional markets.

How to Invest in Bonus Stocks?

Investing in regular bonus stocks using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in Bonus Shares:

Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
Search for Bonus Stocks: Go to Tickertape Stock Screener and search for Bonus Stocks.
Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, or dividend yield. You can create your own custom filter if your preferred parameters are not available. This can help you narrow down the top Bonus Shares in India.
Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in-depth.
Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
Invest Through Your Broker: Once you’ve identified Bonus Shares that align with your investment thesis, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Types of Bonus Stocks

Fully Paid Bonus Shares

Fully paid bonus shares are the most common type issued by companies. In this case, shareholders receive additional shares completely free of cost, and the company funds them out of its free reserves, securities premium, or retained earnings. For instance, if you own 100 shares of a company and it declares a 1:1 bonus issue of shares, you will get 100 more shares at no extra cost, effectively doubling your holdings while the overall investment value remains the same as the share price adjusts accordingly.

Partly Paid Bonus Shares

Partly paid bonus shares are rare today, but they were historically issued to convert partly paid shares into fully paid ones without asking shareholders for extra payment. For example, if you hold a share with a face value of ₹10 but have only paid ₹7 so far, the company may use its reserves to cover the remaining ₹3 and mark the share as fully paid through a bonus issue. This way, shareholders don’t need to contribute further, and their partly paid shares get upgraded to fully paid shares.

Bonus Issue Based on Ratio

Bonus shares are often expressed in ratios, which indicate how many free shares shareholders receive for every share held. For example, in a 2:1 bonus issue, shareholders receive two new shares for every one they already own. So, if an investor holds 50 shares, they will be allotted 100 extra shares after the bonus. Similarly, a 3:2 bonus means that for every two shares owned, investors receive three additional shares, increasing their total holdings while adjusting the stock’s market price proportionally.

Bonus Shares by Source of Funding

Companies can also be classified by the reserves used to issue bonus shares. If the issue comes from free reserves or retained earnings, it reflects profits reinvested back into the company. If it’s from the securities premium account, the funds raised earlier above face value are being distributed as shares. Bonus issue of shares may also be made from the capital redemption reserve, which is created when preference shares are redeemed. For example, if a company redeems preference shares and transfers that amount to CRR, it can later utilize those funds to issue bonus shares to equity shareholders.

Advantages of Investing in Bonus Shares

No Extra Cost to Shareholders

Bonus shares are given free of charge. Investors don’t need to spend additional money to increase their shareholding. For example, if you own 100 shares of a company and it announces a 1:1 bonus, you instantly get 100 more shares without investing another rupee.

Improves Liquidity

When bonus shares are issued, the number of shares in the market increases, and the share price usually adjusts downward in proportion. This makes the stock more affordable to new investors and enhances trading activity, improving liquidity in the market.

Signal of Financial Strength

Bonus issues are typically declared by companies with strong reserves and consistent profitability. Receiving bonus shares often signals that the company is financially healthy, which builds investor confidence.

Long-Term Wealth Creation

While the immediate value of your holding doesn’t change after a bonus, the increase in the number of shares can boost returns in the long run. If the company performs well, future dividends and capital gains apply to a larger number of shares, multiplying benefits.

Tax Benefits (compared to cash dividends)

In many jurisdictions, bonus shares are not taxed at the time of issue (though capital gains tax may apply when you sell). This makes them a more tax-efficient reward compared to cash dividends, which are often taxed immediately.

Risks of Investing in Bonus Shares

No Real Increase in Wealth

A bonus issue doesn’t actually make shareholders richer immediately. Since the share price falls proportionately after the bonus, the total value of your holdings remains the same. For example, if you had 100 shares worth ₹200 each (₹20,000 total) and the company issues a 1:1 bonus, you now have 200 shares, but each is worth about ₹100, still ₹20,000 in value.

Possible Short-Term Price Volatility

After a bonus issue, share prices often become more volatile. Since the stock looks cheaper due to price adjustment, it may attract speculative traders, leading to short-term fluctuations.

Dilution of Key Ratios

Issuing bonus shares increases the number of shares outstanding, which can reduce financial ratios like earnings per share (EPS) and book value per share. Even if profits remain the same, these diluted ratios can make the company’s performance appear weaker.

No Guarantee of Future Dividends

Some investors assume that with more shares, they will receive higher dividends. But dividends depend on the company’s policy and profitability. If profits don’t rise in proportion to the new share count, dividend per share may actually fall.

Overestimation of Company Strength

While bonus issues are often seen as a positive signal, not all companies that issue them are fundamentally strong. Sometimes firms use bonus issues mainly to create investor excitement, even when future growth prospects are uncertain.

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Factors to Consider Before Investing in Bonus Shares

Company’s Financial Health

Before buying into a stock expecting bonus shares, check whether the company is fundamentally strong. Bonus shares come out of reserves, so if the business doesn’t generate steady profits, the bonus issue might only be a short-term gimmick. For instance, companies with consistently rising revenues and healthy profit margins are better candidates.

Impact on Earnings Per Share (EPS)

A bonus issue increases the number of shares outstanding, which dilutes EPS. If profits don’t grow proportionately, the company’s financial performance may appear weaker on paper. For example, if a company has ₹100 crore profit and 1 crore shares (EPS = ₹100), after a 1:1 bonus the EPS becomes ₹50 unless profits also double.

Future Dividend Policy

Dividends are paid per share, and if profits don’t scale up, the dividend per share may fall after a bonus. For example, a company paying ₹10 dividend per share might reduce it to ₹5 per share post-bonus if profits remain unchanged.

Liquidity and Market Sentiment

Bonus shares usually lower the stock price (since the same value is spread across more shares), which can attract retail investors and improve liquidity. While this is good for trading, it can also invite short-term speculation. It’s important to judge whether you’re investing for long-term value or just market excitement.

Tax Implications

Bonus shares are generally tax-free at the time of issue, but when you sell them later, capital gains tax applies. Your cost of acquisition for bonus shares is treated as zero, which means the entire selling price becomes taxable as capital gains. So, if you sell soon after a bonus issue, your tax liability may be higher.

Conclusion

Bonus shares are a straightforward yet powerful tool for companies to reward shareholders without monetary payout, boosting liquidity and market participation. While they don’t increase wealth outright, they offer long-term potential, especially when backed by financial strength.

As not all Bonus Shares reflect equal strategic outcomes, it's important to evaluate them thoroughly. Using the Tickertape Stock Screener with over +200 filters, you can identify companies issuing bonus shares that align with your investment thesis, tracking profitability, reserves, equity growth, and return metrics before making an informed decision.

Frequently Asked Questions on Bonus Shares

What are Bonus Shares?
Bonus shares are additional shares issued by a company to its existing shareholders at no extra cost, usually by capitalising its reserves or retained earnings. They increase the number of outstanding shares without altering overall market capitalisation.
How to invest in Bonus Shares?
Here’s how you can invest in Bonus shares -
1. Go to the Tickertape Stock Screener
2. Select the "Bonus" stocks.
3. From the Bonus shares, analyse and sort the Bonus shares using over 200+ filters - including valuation ratios, financials, technical indicators, and more - based on your investment thesis.
4. Review the filtered bonus share list, and identify stocks that best align with your risk appetite, return expectations, and investment goals.
5. Once you've shortlisted the stocks, click ‘Place Order’ to invest in your preferred Bonus shares.
Disclaimer: Please do your own research or consult your financial advisor before investing.
How to choose bonus shares for investing?
When evaluating bonus shares, investors often examine the company’s profitability record, reserves and surplus available for capitalisation, and past history of bonus issuances. While tracking upcoming bonus shares, it is important to assess the industry outlook, dividend consistency, balance sheet strength, and whether the bonus issue aligns with other corporate actions such as stock splits or rights issues.

Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
Do Bonus Shares offer regular dividends?
Bonus shares themselves are not a guarantee of dividends. Whether a shareholder receives regular dividends depends on the issuing company’s dividend policy and profitability after the bonus issue.

Disclaimer: The latest data on dividends is derived from Tickertape Stock Screener.
What are the factors affecting Bonus Shares prices?
1. Corporate Announcements: Bonus issue declarations often influence demand as they signal confidence from the company.
2. Earnings Performance: Strong profits and reserves that justify bonus issuance can impact investor sentiment.
3. Dilution Effect: Although the overall market capitalization remains unchanged, the increase in outstanding shares can influence short-term price adjustments.
4. Market Sentiment: Perception that bonus shares improve liquidity and accessibility may drive price movements.
5. Dividend History: Companies that pair bonus issues with consistent dividend policies often see stronger price responses.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
What is the difference between upcoming stock split and bonus share?
A stock split increases the number of shares by reducing the face value, keeping the total value the same. A bonus share is an additional share issued free to existing shareholders from the company's reserves, increasing share count without changing the face value. Both dilute price proportionally.

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Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.