A very wonderful and encouraging news is coming for investors investing in the Indian stock market and expecting passive income or long-term returns. After the close of trading in the stock market, two well-known big companies have made big and important announcements related to Bonus Share and Stock Split to enrich their investors. One of these companies has approved the proposal of giving free bonus shares to its shareholders in the ratio of 1:1, which means that for every share, investors will get one share absolutely free. At the same time, another big company is going to take a big decision on bonus as well as stock split in its board meeting to be held this week. In the last trading session, the shares of both the companies closed in the green and with gains, due to which the enthusiasm of the investors is at its peak. Let us know in detail what is the complete plan of these two companies and how much benefit investors can get from it. Big announcement of Choice International: 1 free bonus share will be available on every share, preparation to increase the authorized capital also. Choice International, a part of BSE 500 group and a leading company with a strong position in the stock market, has announced to give a big gift to its investors after Diwali. The company has formally approved the proposal for a bonus issue in the ratio of 1:1 in its important board meeting held after market close on Monday, November 2. Under this spectacular corporate action, the shareholders of the Company will be given one additional equity share absolutely free of cost for every one equity share held in their demat account on a future record date. However, this proposal of the company is yet to get the final approval of the shareholders. Although the Management has not yet announced the official record date for the Bonus Shares, the Company expects that the Bonus Shares will be successfully credited or dispatched to the investors' accounts within the next two months from the date of this Board approval. Huge increase in the authorized share capital and condition of the shares: To smoothly complete this big distribution of bonus shares, Choice International has also made a big proposal to increase its authorized share capital. The company is planning to substantially increase its authorized capital from the current Rs 225 crore to Rs 447.80 crore. Under this, the total number of authorized equity shares will also be directly increased from 22.50 crore to 44.78 crore. This complete change has been proposed as part of the necessary amendments to the rules of the bonus issue and the Memorandum of Association (MoA) of the company. There is a huge craze regarding this news among investors, and in the last session this stock closed at the level of Rs 750 with a strong rise of about 4 percent. Bosch Limited's gift to investors: Board meeting will be held on 6th November, decision will be taken on both bonus and stock split. On the other hand, Bosch Limited, another reputed and huge stock market giant with huge share value, has also made a big announcement for its investors. This auto component giant, included in the BSE 200 index, has informed that its Board of Directors will consider and may approve the proposal to issue bonus shares in an important meeting to be held on 6 November 2026. The biggest attraction of this meeting is that the company will seriously consider not only the bonus shares but also the proposal of sub-division i.e. Stock Split of its existing equity shares with Rs 10 face value. When an expensive stock like Bosch Limited comes under the ambit of split or bonus, it becomes very easy for small retail investors to invest in it. Both these proposals of the company will be subject to the approval of the shareholders and all applicable regulatory provisions. In the last trading session, the stock of Bosch Limited had closed at a high of Rs 47,897 with a gain of about 2 percent. Why do companies announce bonus shares and stock splits? What effect does this have on the market? Often the question that comes to the mind of new investors is why do companies distribute their profits in this way through bonus shares or stock split? The main objective behind this is to increase the liquidity and number of shares traded in the stock market. When a company announces bonus shares or a stock split, the total number of shares in the market increases, bringing the stock within the affordable range of more retail and small investors. When the total market value of the company remains stable despite the increase in the number of shares, the price of each share comes down proportionately, allowing more investors to easily trade in that counter than before. Increase in liquidity in the market provides great convenience to existing investors in selling or buying their shares, and the positive impact of increase in volume is ultimately seen on the company's share price and market sentiment.
