How do bonuses, dividends and splits impact my holdings?

How Do Bonuses, Dividends and Splits Impact My Holdings?

Corporate actions such as bonus issues, dividends, and stock splits are decided by the company whose shares you hold. These actions may change your share quantity, average price, or your bank balance, depending on the type.

Bonus Issue

The company gives you extra shares for free in a fixed ratio (for example, a 1:1 bonus means you get 1 free share for every 1 share held).

Impact on holdings:

  • Your total number of shares increases.
  • The average buy price adjusts automatically to reflect the bonus shares.

Example: If you held 10 shares at ₹100 each and the company issues a 1:1 bonus, you’ll now hold 20 shares at an average price of ₹50.

Dividend

The company pays part of its profits to shareholders as a cash dividend.

Impact on holdings:

  • Your shareholding quantity remains the same.
  • The dividend amount is credited directly to your registered bank account.

Example: If the dividend is ₹10 per share and you own 50 shares, you’ll get ₹500 credited to your bank account.

Stock Split

The company splits its shares into smaller units (for example, 1 share of ₹10 face value becomes 2 shares of ₹5 each).

Impact on holdings:

  • Your total number of shares increases in proportion.
  • The average buy price adjusts automatically to reflect the split.

Example: If you held 5 shares at ₹1,000 each and the company does a 1:5 split, you’ll now hold 25 shares at ₹200 each.

Corporate actions do not change the total value of your investment. They only adjust how it is split between the number of shares, the price per share, or direct cash credit.

What If...

SituationWhat to do
My average buy price looks wrong after the bonus/splitAverage price adjustments are processed automatically. If you still see a mismatch, check again after settlement.
I got dividend info in Corporate Actions, but no credit in my accountDividends go directly to your bank account. Check your bank statement.
My share quantity changed suddenlyThis is due to a bonus issue or stock split. Check Corporate Actions for details.

Last updated: 19 Sep 2025

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