Bonus, Share Split Alert: Stock worth nearly ₹50,000 to reward shareholders on November 6 - A look at past trends

Shares of Bosch Ltd., the auto components manufacturer, are trading with gains of nearly 4% on Tuesday, November 3, ahead of its board meeting to consider a bonus issue of shares, along with a stock split. The board meeting is scheduled to be held on Saturday, November 6.

This will be the first instance in 22 years that the board will be considering a stock split. Back in July 2004, Bosch had carried out a stock split, where it split one share with a face value of ₹100 into ten shares of face value of ₹10 each.

Bosch has never issued bonus shares to its shareholders, which means this will also be the first time in the company's trading history that shareholders will receive bonus shares as well.

The auto components manufacturer has regular paid annual dividends to its shareholders every year starting 2008. During this 18-year period, Bosch has paid dividends worth nearly ₹3,000 per share to its shareholders.

Over the last two decades, Bosch has also carried out two share buybacks. Back in 2016, the company carried out a buyback worth ₹202 crore, repurchasing nearly 9 lakh equity shares at a price of ₹23,000 per share. The buyback was done via the tender offer route.

In February 2019, Bosch carried out another share buyback, purchasing over 10 lakh equity shares at ₹21,000 each via the tender offer route, taking the total buyback size to ₹2,156 crore.

At the end of the September quarter, promoters of Bosch had a 71% stake in the company, while public shareholders held the remaining 29%.

Mutual Funds are owning 7.26% stake in the company at the end of the September quarter, while Insurance Companies like GIC and New India Assurance are also owning 2.81% and 1.71% respectively.

Close to 60,000 small retail shareholders, or those with authorized share capital of up to ₹2 lakh, have a 5% stake in the company.

Shares of Bosch are trading 3.4% higher on Tuesday at ₹49,740. The stock is up 38% so far this year, having gained 11% in the last one month.