Bonus Share Alert: Bharat Rasayan to reward shareholders, split stock

Shares of Bharat Rasayan Ltd. gained as much as 12% on Monday, October 20, after the company announced that its board will meet to consider a bonus issue of shares and a stock split along with its September quarter results.

In an exchange filing, the company said that the board will meet on Friday, October 24, to consider these proposals.

The record date for the same is yet to be determined.

This will be the first instance that Bharat Rasayan will be considering a bonus issue and a stock split for its shareholders.

Companies generally carry out a stock split to make it easier for shareholders to buy or sell their shares, as it increases the liquidity in the stock. A stock split divides a company's stock into more shares, lowering the price and increasing the number of shares available to trade.

The companies also issue bonus shares to capitalise on their free reserves, increase their Earnings Per Share (EPS) and paid-up capital, along with reducing the reserves. Shareholders are issued these shares at no additional cost and hence are also known as free shares.

Only those investors will be eligible for bonus shares who will buy the stock before the ex-date. If an investor purchases the shares on the ex-date or after that, they will not be eligible to get bonus shares.

Shares of Bharat Rasayan Ltd. are now trading 1.38% higher at ₹9,968.45. The stock has been an underperformer in 2025 so far, declining 2%.