Equity Markets

[princeabhishek]

Hi
Can someone tell me about the ratio of the bonus share issued by Infosys yesterday. And is it wise to purchase before the record date of the bonus, or once the share goes ex-bonus.

[nakul05]

Originally Posted by princeabhishek

Hi
Can someone tell me about the ratio of the bonus share issued by Infosys yesterday. And is it wise to purchase before the record date of the bonus, or once the share goes ex-bonus.

The Infy board is meeting on 14th to discuss about the bonus issue. Nothing has been officially declared till now. But with Infy over 3000, a split looks imminent. Its nothing like better ex-bonus or cum-bonus. You will find people buying/selling under both the situations

[itz_me_vishal]

Infosys is going to be d stock of d month...
the rumours abt share bonus is due to 25 years of existence and another reasn is crossing $2 bn revene mark...
i believe SATYAM is also crossing $ 1 bn mark...so sum rumours regarding bonus issue of dat 2...
wat say...infy can tuch 3600 i believe post bonus ...if any..

[itz_me_vishal]

guyz i had a query...
my fren had purchased 100 nova petro..@157
bought on 13th march...coz of sum bonus newz 1:1 on dat..record date waz 20th march...but unfortunately he forgot 2 put them in his demat account b4 that date..
the price has halved but no issue of bonus shares..
ne idea wen will d shares b credited...if incase it wud...

[marc]

Originally Posted by princeabhishek

Hi
Can someone tell me about the ratio of the bonus share issued by Infosys yesterday. And is it wise to purchase before the record date of the bonus, or once the share goes ex-bonus.

Adding to the questions:

1. I have 2 Infy shares. If Infy issues bonus at 3:1, I wont get anything ?
2. Does bonus shares always comes along with split of shares ?
3. With Infy shares at its peak now, is it really advisable to buy few more ? what are the chances that it would soar more ?

answers appreciated...

[dukevarun]

Originally Posted by marc

Adding to the questions:

1. I have 2 Infy shares. If Infy issues bonus at 3:1, I wont get anything ?
2. Does bonus shares always comes along with split of shares ?
3. With Infy shares at its peak now, is it really advisable to buy few more ? what are the chances that it would soar more ?

answers appreciated...

Hi Marc,

Assuming that infy issues a bonus at 3:1 , in that case you will not get any bonus shares. What you will get is a check for the amount that you would have recieved. That will be 2/3 the cost of the adjusted share price. Eg. if the share goes ex-bonus at 3000 bucks at a bonus of 3:1 then in that case the price of the share will become 2250
ie 3 shares are worth 9000 bucks now 4 shares are worth 9000 ie each share is 2250

Now since you hold two shares you have 6000 bucks in infy, but as per the new price your shares are worth 4500 bucks so you will get 1500 bucks back ( which also happens to be 2/3 the price of the share) which is the quantity of bonus shares that you were supposed to recieve.


It is not necessary that bonus shares come along with a split, some companies do that eg. ITC did it last year, Sterlite is planning to do a split and bonus sometime soon etc

As for buying more infy shares ... hmmm ..tough one... that depends on how much moolah you got !!!

cheers

[marc]

Hey Dukevarun,

Thanks for all your replies man...

Originally Posted by dukevarun

Hi Marc,

Assuming that infy issues a bonus at 3:1 , in that case you will not get any bonus shares. What you will get is a check for the amount that you would have recieved. That will be 2/3 the cost of the adjusted share price. Eg. if the share goes ex-bonus at 3000 bucks at a bonus of 3:1 then in that case the price of the share will become 2250
ie 3 shares are worth 9000 bucks now 4 shares are worth 9000 ie each share is 2250

I thought bonus was always extra... What you are saying is a share split of 3:4 isn't it...
In this case, i am getting literally nothing but as usual only hoping that share price of infy would rise on some grounds.

Originally Posted by dukevarun

It is not necessary that bonus shares come along with a split, some companies do that eg. ITC did it last year, Sterlite is planning to do a split and bonus sometime soon etc

If that was bonus, then what is split.. ?

Originally Posted by dukevarun

As for buying more infy shares ... hmmm ..tough one... that depends on how much moolah you got !!!

cheers

Still thinking....

[riki_rohit]

Hey guys, can anybody guide me on OBC shares. What should be done, should them be sold or held back, I have no plans to buy as no moolah with me right now .
Regarding some analysis, the max and min of OBC this year have been around 380 and 230, respectively and currently the price is at 245 (approx). It is lower than the average when we see the graph. Any suggestions experts.

[threeacer]

Originally Posted by riki_rohit

Hey guys, can anybody guide me on OBC shares. What should be done, should them be sold or held back, I have no plans to buy as no moolah with me right now .
Regarding some analysis, the max and min of OBC this year have been around 380 and 230, respectively and currently the price is at 245 (approx). It is lower than the average when we see the graph. Any suggestions experts.

PSU banking sector is currently at their bottom and OBC is not an exception.
It's a good share with reasonably low P/E.

But there are some other stocks in banking sector which looks better to me. The best among them is UCO Bank and ICICI bank. other good banking stocks are Andhra Bank, Bank of India and Allahabad bank.

[threeacer]

Originally Posted by marc

Hey Dukevarun,

Thanks for all your replies man...



I thought bonus was always extra... What you are saying is a share split of 3:4 isn't it...
In this case, i am getting literally nothing but as usual only hoping that share price of infy would rise on some grounds.



If that was bonus, then what is split.. ?



Still thinking....

Difference between a bonus share and Share split is that in case of share split face value of the share also reduces.In case of Bonus shares it remains same.