Bonus & Buyback Details
Two corporate actions that change your share count or the company’s — how each works, and where to track live announcements.
Bonus issues
A bonus issue gives existing shareholders free additional shares in a fixed ratio (say 1:1 — one new share per share held). The company converts reserves into share capital; nothing changes about the business, so the price adjusts down proportionally on the ex-date. Work out your post-bonus holding with the bonus share calculator.
Share buybacks
In a buyback the company repurchases its own shares — via a tender offer at a fixed (usually premium) price, or by buying from the open market. Buybacks shrink the share count, which lifts earnings per share, and often signal that management considers the stock undervalued. In a tender offer, small shareholders in India get a reserved quota, so acceptance ratios can be attractive.
Track live announcements
Official sources, always current: NSE corporate actions · BSE corporate actions.
Frequently asked questions
Should I tender my shares in a buyback?
Compare the buyback price to the market price and your own view of fair value, and check the likely acceptance ratio. If only part of your tender is accepted, you keep the rest — there is no obligation to participate.