Bonus-in-unclaimed-shares

KIN~UNKNOWN

Bonuses can be helpful for the "recovery" of your physical shares, but it depends on what kind of "bonus" we're talking about. Let's break it down simply:
Scenario : "Bonus Shares" (The company gives you more shares for free)
Imagine you own physical certificates for 100 shares of a company.
* What happens: The company decides to give you extra shares, say, 1 for every 1 you own. So, you suddenly have 200 shares. You'll get new physical certificates for these extra shares.
* Is it beneficial for recovery?
* Initially, no direct "recovery" of the price per share. If your 100 shares were worth ₹100 each (total ₹10,000), after the bonus, you have 200 shares, but each share's price will likely drop to around ₹50. Your total value is still ₹10,000. So, the individual share price hasn't recovered.
* But it's good for long-term wealth and potential future recovery.
* More shares: You now own a bigger piece of the company.
* Future growth: If the company performs well in the future, your 200 shares will grow in value much faster than your original 100 shares would have. This means your overall investment "recovers" and grows more significantly.
* Dividends: If the company pays dividends, you'll get dividends on 200 shares instead of 100, increasing your income.
* So, while not an immediate price recovery, it sets you up for better overall value recovery and growth over time. 

Posted On: 2025-06-24