Bonus Issue & Stock Split

More shares, each worth proportionately less. Your total value is unchanged.

A bonus issue gives existing shareholders free extra shares — 1:1 means one new share for each held. A split divides each share into smaller ones; a ₹1,000 share split 1:2 becomes two ₹500 shares.

In both cases you own more shares at a lower price and your total holding is worth exactly the same the moment it happens. The purpose is to make the share affordable to more buyers.

A rights issue is different in kind: the company offers existing holders the chance to buy *new* shares, usually at a discount. That one costs money and dilutes you if you decline.

Hold 100 shares at ₹2,000 (₹2,00,000). After a 1:1 bonus you hold 200 at ₹1,000 — still ₹2,00,000.

Historical charts must be adjusted for these events. An unadjusted chart shows a 50% "crash" on the split date that never actually happened to anyone.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.