BSE share price rises after 2:1 bonus share announcement.

BSE Share Price Rises Nearly 2% on 2:1 Bonus Share Announcement

Posted on April 1, 2025, by Niftynews

The BSE share price surged by nearly 2% on April 1, 2025, following the announcement of a 2:1 bonus share issue. The announcement, which was made on March 30, 2025, stated that shareholders would receive two ₹2 equity shares for every one full paid-up equity share they currently own, pending shareholder approval via postal ballot. The record date to determine eligible shareholders for the bonus shares will be communicated at a later time.

BSE Share Price Today: Market Reaction and Impact

The BSE share price today opened at ₹5,544 per share on the National Stock Exchange (NSE). Throughout the day, the stock touched an intraday high of ₹5,575.50 and an intraday low of ₹5,445.30. The price movement reflected a positive sentiment in response to the bonus share announcement, which is expected to further drive investor interest in the company’s stock.

Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, commented on the BSE share price‘s recent performance. According to Bhosale, the stock is currently trading positively, with significant gains over the past few weeks. The stock has formed a positive chart pattern across weekly, monthly, and quarterly timelines, signaling continued growth in the near term. Bhosale recommends a “buy on dip” strategy for traders, indicating that any slight decline in the BSE share price should be viewed as an opportunity to enter.

The immediate support for the stock is seen around ₹5,200, while the key resistance levels are between ₹6,000 and ₹6,200. The positive momentum in the BSE share price reflects confidence in the company’s future performance, bolstered by the recent announcement of the bonus issue.

Why Bonus Shares Matter to BSE Shareholders

Bonus shares are issued by companies to capitalize on their free reserves, which helps to enhance their Earnings Per Share (EPS) and paid-up capital while reducing the reserves. These shares are distributed to existing shareholders at no additional cost, making them effectively “free shares.” The BSE share price’s increase following the announcement reflects the market’s positive reaction to the issuance, which is often seen as a sign of financial health and a method to reward shareholders.

For BSE share price investors, the bonus share issuance is a reason to be optimistic. Historically, BSE has provided consistent returns to its shareholders, distributing dividends totaling over ₹170 per share since its IPO in 2017. Additionally, the company has conducted buybacks in 2019 and 2023, demonstrating a commitment to enhancing shareholder value.

The Ex-Date and Bonus Share Eligibility

Investors need to be aware of the ex-date, which is the cutoff date for determining eligibility for bonus shares. Only those who hold shares before the ex-date will be entitled to receive the bonus shares. If investors buy BSE shares on the ex-date or after, they will not be eligible for the bonus issue.

This structure ensures that current shareholders benefit from the bonus issue, while also offering a potential opportunity for new investors to purchase shares in anticipation of future growth.

BSE’s Strategy for Shareholder Value

This is only the second time since BSE went public in 2017 that the board has considered issuing bonus shares. The first bonus issue was a significant event, and this recent announcement underlines BSE’s ongoing efforts to reward its investors and capitalize on its growing business operations. In addition to bonus shares, BSE has a history of issuing dividends and conducting share buybacks, which contributes to a positive outlook for BSE share price.

Outlook for BSE Share Price

The outlook for the BSE share price remains positive, thanks to the company’s consistent financial performance, strategic initiatives like bonus share issuances, and a healthy market position. As of now, BSE shares continue to see strong interest, reflecting the company’s robust position in the market.

With analysts forecasting a steady growth trajectory for the BSE share price in the coming months, it seems that the company is well-poised for continued success. Investors who have held shares in BSE are likely to benefit from the bonus share issuance, while those who are looking to enter the market can view the stock’s current dip as a potential buying opportunity.

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