For investors in Tata Power and Tata Consumer, bonus shares can add a layer of excitement to their portfolios. These companies, known for their solid fundamentals and growth trajectories, have rewarded shareholders in the past with dividends and bonus shares.
Impact of Bonus Shares on Share Price
When companies like Tata Power or Tata Consumer issue bonus shares, their share price is adjusted downward proportionally. However, this doesn’t affect the overall market capitalization of the company. Instead, it offers investors more liquidity and makes shares affordable to smaller investors.
Should You Invest for Bonus Shares?
While bonus shares are appealing, they shouldn’t be the sole reason for investing in a company. Assessing fundamentals like earnings growth, sectoral trends, and market position is crucial before making any investment decision.
Bonus shares, when combined with a robust company strategy, can amplify long-term wealth creation for shareholders.
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