CORPORATE ACTIONS EXPLAINED
Bonus issue vs stock split
A bonus issue and a stock split do almost the same thing to your holding: more shares, a proportionally lower price, the same value. They are different events in the company's accounts, and the difference shows up in a single field of the exchange's own filing — face value.
The same thing, said two ways
| Event | Company | Ex-date | What NSE filed | Face value after | Price divided by |
|---|---|---|---|---|---|
| bonus | PGILPearl Global Industries Limited | 11 Sept 2026 | Bonus 1:1 | ₹5 unchanged | 2.00 |
| split | TAALTECHTaal Tech Limited | 22 Sept 2026 | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 restated | 5.00 |
Read the fifth column against the fourth. The split's face value is the number written into its own subject line; the bonus's face value appears nowhere in its subject, because the action did not touch it.
What changes, and what does not
| Bonus issue | Stock split | |
|---|---|---|
| Face value per share | Unchanged | Reduced — this is the action |
| Number of shares you hold | Rises by the ratio | Rises by the ratio |
| Quoted price on ex-date | Falls by the same ratio | Falls by the same ratio |
| Value of your holding | Unchanged | Unchanged |
| Company's reserves | Fall — capitalised into share capital | Unchanged |
| Paid-up share capital | Rises | Unchanged |
| Do you pay anything? | No | No |
| Do you have to act? | No — automatic if held before ex-date | No — automatic if held before ex-date |
The arithmetic, in both directions
A bonus of a:b gives you a new shares for every b you hold. Where you had b shares you now have a + b, so the price divides by (a + b) ÷ b. A 1:1 bonus divides the price by 2; a 10:1 bonus divides it by 11, not by 10 — a distinction that trips up a surprising number of otherwise careful write-ups.
A split from ₹f to ₹t face value multiplies your share count by f ÷ t and divides the price by the same figure. ₹10 to ₹1 is a tenfold split. ₹10 to ₹2 is fivefold.
In both cases the total is conserved at the instant of the adjustment. Nobody gains and nobody loses on the ex-date; the shares are simply denominated differently.
Why the balance-sheet difference is not merely technical
A bonus issue moves money from reserves — accumulated past profits that already belonged to shareholders — into paid-up share capital. Nothing leaves the company and nothing arrives, but the reserves line falls. That means a company can only issue a bonus as large as its free reserves allow, and having done so it has less room to do it again.
A split touches neither reserves nor capital. It simply redenominates existing shares, so the only constraint is the floor on face value — a company already at ₹1 cannot split further. Between them, these two constraints explain most boards' choices better than any theory about what each action signals.
Why your chart shows a crash that did not happen
On the ex-date the exchange adjusts the reference price by the ratio. Charting tools that have not applied the adjustment show a vertical fall — 50% for a 1:1 bonus, 90% for a ₹10 to ₹1 split — on a day when nothing happened to the business at all.
Before concluding that something went badly wrong on a particular date, check whether the stock went ex a bonus or split that morning. The table below is the place to check.
Recent bonus issues and splits on the NSE
The 30 most recent of 95 actions since 26 Sept 2025. The full list, together with board meetings called to consider one and any confirmed upcoming ex-dates, is on the bonus and split record date page.
| Company | Event | What NSE filed | Face value | Ex-date | Price divided by |
|---|---|---|---|---|---|
| TAALTECHTaal Tech Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 22 Sept 2026 | 5.00 |
| PGILPearl Global Industries Limited | bonus | Bonus 1:1 | ₹5 | 11 Sept 2026 | 2.00 |
| TVSHLTDTVS Holdings Limited | bonus | Scheme Of Arrangement - Bonus Ncrps 46:1 | ₹5 | 8 Sept 2026 | — |
| TCCTCC Concept Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 4 Sept 2026 | 5.00 |
| CORDELIAWaterways Leisure Tourism Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 25 Aug 2026 | 10.00 |
| TDPOWERSYSTD Power Systems Limited | split | Face Value Split (Sub-Division) - From Rs 2/- Per Share To Re 1/- Per Share | ₹1 | 24 Aug 2026 | 2.00 |
| GOODLUCKGoodluck India Limited | bonus | Bonus 2:1 | ₹2 | 21 Aug 2026 | 3.00 |
| SIYSILSiyaram Silk Mills Limited | bonus | Scheme Of Arrangement - Bonus Ncrps 4:1 | ₹2 | 21 Aug 2026 | — |
| SIYSILSiyaram Silk Mills Limited | bonus | Scheme Of Arrangement - Bonus Ncrps 3:1 | ₹2 | 21 Aug 2026 | — |
| KIRLPNUKirloskar Pneumatic Company Limited | split | Face Value Split (Sub-Division) - From Rs 2/- Per Share To Re 1/- Per Share | ₹1 | 18 Aug 2026 | 2.00 |
| TEMBOTembo Global Industries Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 5 Aug 2026 | 10.00 |
| NARMADANarmada Agrobase Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 5/- Per Share | ₹5 | 31 Jul 2026 | 2.00 |
| HARDWYNHardwyn India Limited | bonus | Bonus 2:5 | ₹1 | 28 Jul 2026 | 1.40 |
| JLHLJupiter Life Line Hospitals Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 24 Jul 2026 | 5.00 |
| POCLPondy Oxides & Chemicals Limited | split | Face Value Split (Sub-Division) - From Rs 5/- Per Share To Rs 2/- Per Share | ₹2 | 21 Jul 2026 | 2.50 |
| GOLDIAMGoldiam International Limited | bonus | Bonus 1:3 | ₹2 | 10 Jul 2026 | 1.33 |
| MWLMangalam Worldwide Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 10 Jul 2026 | 10.00 |
| MBAPLMadhya Bharat Agro Products Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 3 Jul 2026 | 5.00 |
| KRISHANAKrishana Phoschem Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 3 Jul 2026 | 5.00 |
| KOTYARKKotyark Industries Limited | bonus | Bonus 10:1 | ₹10 | 24 Jun 2026 | 11.00 |
| ZFCVINDIAZF Commercial Vehicle Control Systems India Limited | bonus | Bonus 5:1 | ₹5 | 24 Jun 2026 | 6.00 |
| DBEILDeepak Builders & Engineers India Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 19 Jun 2026 | 10.00 |
| BRIGADEBrigade Enterprises Limited | bonus | Bonus 1:3 | ₹10 | 17 Jun 2026 | 1.33 |
| CUBCity Union Bank Limited | bonus | Bonus 1:3 | ₹1 | 12 Jun 2026 | 1.33 |
| E2EE2E Networks Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 5 Jun 2026 | 10.00 |
| TRENTTrent Limited | bonus | Bonus 1:2 | ₹1 | 4 Jun 2026 | 1.50 |
| ANANDRATHIAnand Rathi Wealth Limited | bonus | Bonus 1:1 | ₹5 | 3 Jun 2026 | 2.00 |
| LICILife Insurance Corporation Of India | bonus | Bonus 1:1 | ₹10 | 29 May 2026 | 2.00 |
| LEMERITELe Merite Exports Limited | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Rs 2/- Per Share | ₹2 | 29 May 2026 | 5.00 |
| AVROINDAVRO INDIA LIMITED | split | Face Value Split (Sub-Division) - From Rs 10/- Per Share To Re 1/- Per Share | ₹1 | 5 May 2026 | 10.00 |
Rows showing no divisor are bonus issues of preference shares or warrants under a scheme of arrangement. They carry a ratio, but the equity price does not adjust by it — so no number is printed rather than a misleading one.
Related reading
- Bonus and split record dates — proposed, confirmed and completed actions.
- Rights issue explained — the corporate action that does ask you for money.
- Dividend record date calendar — the other action with an ex-date.
Bonus and split questions
What is the main difference between a bonus issue and a stock split?
A split reduces the face value of each share and multiplies the share count to match; a bonus issue leaves face value untouched and creates new shares by capitalising the company’s reserves. For the shareholder the immediate effect is nearly identical — more shares, proportionally lower price, same total value. The difference is in the company’s balance sheet, and it is visible in the exchange’s own filing.
Which is better for investors, a bonus issue or a stock split?
Neither transfers value to you, so "better" does not really apply on the day. Both increase the share count and reduce the price by the same ratio. A bonus does signal that the company has reserves it is willing to capitalise, which a split does not; whether that signal means anything depends entirely on the company.
Does the share price fall after a bonus issue?
The quoted price is adjusted downward on the ex-date by exactly the ratio — a 1:1 bonus roughly halves it. That is an adjustment, not a fall: you hold twice as many shares. Unadjusted charts show it as a vertical drop, which is an artefact of the chart, not an event in the business.
Can a company do a bonus issue and a stock split at the same time?
Yes, and some do — but NSE files them as two separate corporate actions with their own subject lines, even when they share an ex-date. If both apply, the two adjustments compound.
Do I need to do anything to receive bonus shares or split shares?
No. If you hold the shares by the end of the session before the ex-date, the adjustment and the new shares are applied automatically by the depository. Neither action requires an application or a payment, which is what distinguishes both from a rights issue.
Why do companies do this at all?
Usually to bring a high share price down to a range that trades more actively, since a smaller price improves liquidity and makes the stock accessible to more buyers. A company with limited free reserves cannot issue a large bonus but can always split; one already at a ₹1 face value cannot split further but can still issue a bonus. That constraint explains most choices better than any signalling theory.