Bonus and Buyback Details

In the Indian stock market, bonus shares are additional shares given to existing shareholders without any extra cost, based on the number of shares they already own. This practice helps companies increase the liquidity of their shares and rewards shareholders. Buybacks, on the other hand, occur when a company purchases its own shares from the market, reducing the number of outstanding shares. This often boosts the share price and can be a sign that the company believes its shares are undervalued. Both bonus issues and buybacks are strategic moves to enhance shareholder value and signal the company's confidence in its financial health.