Bombay Stock Exchange (BSE), one of India’s oldest and most respected stock exchanges, has approved a bonus issue of equity shares in the ratio of 2:1, according to its exchange filing on the National Stock Exchange (NSE) website.
On Sunday, March 30, 2025, the Board of Directors at BSE authorized the issuance of two bonus shares for every one fully paid-up equity share held by shareholders. Each equity share carries a face value of ₹2, and the bonus issue will amount to over ₹54.93 crore, covering 27,46,52,718 equity shares.
The move reflects the company’s strong financial position and its strategy to reward long-term investors.
Bonus Issue Details: 2:1 Ratio Confirmed
BSE confirmed in its filing that the bonus equity shares will be issued in a 2:1 ratio. This means that shareholders holding one fully paid-up equity share (₹2 face value) will receive two additional shares, effectively tripling their holding without any additional investment.
“Issue of Bonus equity shares in the ratio 2:1, i.e., 2 (Two) equity shares of ₹2/- each for every 1 (One) full paid-up equity share of ₹2/- each held by the shareholders of the Company as on the Record Date, subject to the approval of Shareholders through Postal Ballot,” the filing said.
The company has not yet announced the official record date for the bonus issue. However, it mentioned that the shares would be credited on or before May 29, 2025—approximately two months from the announcement date, depending on shareholder approval.
Why BSE Is Issuing Bonus Shares
Bonus shares help companies capitalize their reserves by converting profits into share capital. Instead of paying out cash dividends, firms like BSE choose to increase shareholder value by distributing bonus shares.
BSE’s balance sheet allows for such an action due to:
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Strong reserves and surpluses
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Solid performance in recent quarters
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Increased market participation and turnover
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Positive outlook on trading volumes
The move also signals management’s confidence in the future of the exchange and aims to increase liquidity in BSE’s shares, making them more attractive to retail investors.
BSE Share Price Reaction
Investors responded positively to the announcement. On Friday, BSE shares surged 16.09%, closing at ₹5,438, compared to the previous close of ₹4,684.35. The jump followed the update regarding the bonus issue and added momentum from SEBI’s proposal to regulate derivatives expiries, which led the National Stock Exchange (NSE) to postpone its weekly expiry schedule tweak.
Market experts believe the rally reflects both short-term enthusiasm and long-term confidence in the BSE stock, especially among retail investors.
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How Bonus Shares Impact Shareholders
When companies issue bonus shares, they increase the number of outstanding shares while keeping the shareholder’s ownership percentage unchanged. Although the share price may adjust to reflect the additional supply, the overall value of holdings remains the same.
For instance, if a shareholder owns 100 BSE shares before the bonus issue, they will own 300 shares post-issue. If the market price adjusts to one-third, the total investment value remains unchanged—but liquidity and affordability improve.
In many cases, bonus issues also broaden retail participation by making the per-share price more accessible.
Regulatory Oversight and Shareholder Approval
BSE has initiated the Postal Ballot process to secure shareholder approval for the bonus issue. The process allows shareholders to vote remotely, ensuring transparency and regulatory compliance.
Following approval, BSE will:
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Announce the Record Date
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Credit bonus shares to eligible demat accounts
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Update the revised shareholding structure
This step-by-step execution ensures that corporate governance standards remain intact and aligns with the regulatory framework governed by SEBI.
BSE’s Recent Performance and Growth Drivers
BSE has demonstrated significant growth over the past year. Several factors contribute to its robust performance:
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Increase in equity trading volumes
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Expansion of SME listings
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Growth in commodity and derivative markets
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Focus on tech-driven trading infrastructure
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Improved participation from mutual funds and retail investors
In addition to equity trading, BSE continues to enhance its presence in innovation-led segments, such as green bonds, ESG indices, and blockchain-based regulatory reporting.
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Market Outlook for BSE
Analysts expect BSE to continue its upward trajectory. The bonus issue, combined with improving fundamentals, positions the stock for long-term growth.
Key drivers for BSE’s future performance include:
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Increased trading volumes due to investor-friendly regulations
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Strategic partnerships and global integrations
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Expansion into digital assets and fintech innovations
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Further SME listings and startup participation
Many market participants view BSE as a diversified exchange with exposure to multiple asset classes and an ability to adapt quickly to regulatory changes.
What Should Investors Watch For?
As BSE progresses with its bonus issue plan, investors should monitor the following developments:
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Announcement of Record Date: This will determine eligibility for receiving bonus shares.
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Shareholder Voting Outcome: Postal Ballot results will confirm the issue timeline.
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Stock Split or Dividend Plans: Future corporate actions may follow.
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Price Movement Post-Issue: Short-term volatility may occur due to share price adjustment.
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SEBI’s Final Decision on Expiry Day Reform: This could further influence exchange-based stocks.
Those who plan to invest or hold BSE shares long-term may find the current phase favorable for accumulation, especially as more retail and institutional attention flows into India’s growing capital markets.
Final Thoughts
BSE’s decision to issue bonus shares in a 2:1 ratio sends a strong message to shareholders: the company values investor loyalty and remains confident in its future. With share prices reacting positively, and structural reforms underway in the Indian markets, BSE positions itself as a resilient and forward-looking institution.
As India’s equity markets continue to evolve, BSE’s growth strategy and shareholder-friendly actions set a benchmark for trust, governance, and capital market innovation.
