Top 5 Companies With the Most Bonus Issues in India: Wipro Leads With 14

Bonus shares have remained one of the most popular ways for Indian companies to reward long-term shareholders. Instead of paying cash, companies issue additional shares to existing investors without any extra cost. A bonus issue increases the number of shares held by investors, while the share price adjusts proportionately after the issue.

Companies generally announce bonus shares when they have accumulated reserves and want to improve stock liquidity, increase retail participation and make shares more accessible to investors. Over the years, several established companies across sectors have created a strong track record of rewarding shareholders through repeated bonus issues.

Among these companies, IT major Wipro has emerged as the leader with the highest number of bonus issues, followed by Larsen & Toubro, Infosys and other established names.

The top 5 companies with the highest number of bonus issues include Wipro, Larsen & Toubro (L&T), Infosys, ITC and Cipla. Wipro has issued bonus shares 14 times, followed by L&T with 10 issues and Infosys with eight. ITC and Cipla have each issued bonus shares seven times.

Wipro has built one of the longest bonus share histories among Indian listed companies. The company issued its first bonus shares in 1971 and has continued rewarding shareholders over several decades. According to historical bonus records, Wipro has announced 14 bonus issues, the highest among major listed companies.

Wipro’s bonus issues were announced in 1971 at a ratio of 1:3, followed by 1:1 issues in 1981, 1985, 1987, 1989, 1992, 1995 and 2017. The company announced 2:1 bonus issues in 1997 and 2004, a 1:1 issue in 2005, a 2:3 issue in 2010, a 1:3 issue in 2019 and a 1:1 issue in 2024.

Under a 1:1 bonus issue, an investor holding 100 shares receives another 100 shares, taking the total holding to 200 shares. Similarly, an investor holding 500 shares would receive 500 bonus shares, increasing the total holding to 1,000 shares. However, the market price adjusts proportionately after the bonus issue.

Larsen & Toubro, one of India’s leading engineering and infrastructure companies, has issued bonus shares 10 times during its listed journey. The company has rewarded shareholders while expanding across infrastructure, Defence, technology, power and engineering sectors. Its bonus history reflects its long operating track record and use of different capital allocation methods.

Infosys has also maintained a consistent record of rewarding shareholders. The IT major has issued bonus shares eight times since becoming a listed company, beginning in 1994, with its latest bonus issue announced in 2018. The company has also returned capital to shareholders through Dividends and buybacks, making shareholder returns an important part of its financial strategy.

ITC completes the list with seven bonus issues. The FMCG and diversified company has issued bonus shares seven times, including a 1:2 bonus issue in 2016. Its diversified business interests span cigarettes, FMCG, hotels, paperboards and agriculture.

Pharmaceutical major Cipla has also issued bonus shares seven times, reflecting its long history in the Indian equity market. The company’s repeated bonus issues place it alongside ITC among the companies with the highest number of bonus issues in India.

A bonus issue itself does not increase the immediate value of an investor’s investment because the stock price adjusts after the additional shares are issued. However, for long-term investors, receiving additional shares can become valuable if the company continues to grow its earnings and market value over time.

Companies such as Wipro, L&T and Infosys demonstrate how established businesses have used bonus issues as one part of their shareholder capital-allocation history. However, bonus issues alone should not be considered an investment decision factor, as the additional shares are accompanied by a corresponding adjustment in the share price.

Disclaimer: The article is for informational purposes only and not investment advice.