Does a 1:1 Bonus issue double the value of an existing investment?

Does a 1:1 bonus issue double the value of an existing investment? 

No. A bonus issue increases the number of shares without any additional investment. The market price is generally adjusted proportionately. 

Example: 

  • Before the Bonus Issue: 100 shares × ₹500 = ₹50,000 

  • After a 1:1 Bonus Issue: 200 shares × approximately ₹250 = ₹50,000 

  • The investment value does not double merely because the share quantity doubles. 

Important to remember: 

  • A bonus issue increases the share quantity, not the investment value by itself. 

Check Trading Availability → 

Know when your credited bonus shares become available for trading and selling. 

Have a question? 

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