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

Bonus shares have remained a popular way for Indian companies to reward long-term shareholders. Instead of distributing 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 market price adjusts proportionately after the issue.

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

Among these companies, IT major Wipro leads the list with 14 bonus issues, followed by Larsen & Toubro (L&T) with 10 and Infosys with eight. FMCG major ITC and pharmaceutical company Cipla complete the top five, with seven bonus issues each.

Top 5 companies with the highest number of bonus issues

Wipro: India’s bonus share leader with 14 issues

Wipro has 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 the companies featured in this list.

Its bonus issues include 1:3 in 1971, followed by 1:1 issues in 1981, 1985, 1987, 1989, 1992, 1995 and 2005. The company also announced 2:1 bonus issues in 1997 and 2004, a 2:3 issue in 2010, 1:1 in 2017, 1:3 in 2019 and 1:1 in 2024.

For example, under a 1:1 bonus issue, an investor holding 100 shares receives another 100 shares without any additional payment. The total holding increases to 200 shares. Similarly, an investor holding 500 shares receives 500 additional shares, taking the total holding to 1,000 shares. However, the market price adjusts proportionately after the bonus issue.

Larsen & Toubro: A decade-long bonus history

Engineering and infrastructure major Larsen & Toubro has issued bonus shares 10 times during its listed journey, with its latest bonus issue in 2017. The company has rewarded shareholders while expanding its presence across infrastructure, Defence, technology, power and engineering sectors.

L&T's bonus history reflects its long operating track record and its approach to shareholder returns through different capital allocation methods.

Infosys: IT giant with eight bonus issues

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.

Apart from bonus issues, the company has returned capital to shareholders through Dividends and share buybacks, making shareholder returns an important part of its financial strategy.

ITC and Cipla complete the list

FMCG major ITC has issued bonus shares seven times, including a 1:2 bonus issue in 2016. Its diversified business operations across cigarettes, FMCG, hotels, paperboards and agriculture have supported its long-term growth journey.

Pharmaceutical company Cipla has also issued bonus shares seven times, reflecting its long-standing presence in the Indian equity market and history of rewarding shareholders through additional share allotments.

Do bonus shares create additional wealth?

A bonus issue does not immediately increase the total value of an investor's investment because the stock price adjusts after the additional shares are issued. However, the number of shares held increases without any additional investment.

For long-term investors, these 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 business growth, combined with shareholder-friendly capital allocation, can contribute to long-term wealth creation.

While bonus issues alone should not be considered a reason to invest in a company, they highlight its history of engaging with shareholders and managing capital. Investors should also evaluate financial performance, business fundamentals, valuations and future growth prospects before making investment decisions.

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