Penny stocks below ₹10 can be alluring to retail investors, especially when they announce bonus shares. A bonus share issue is a corporate action where a company distributes additional shares to existing shareholders, usually from its reserves. These stocks, often associated with micro-cap companies, can witness an uptick in liquidity and retail investor participation following such announcements. However, penny stocks come with high volatility, and a bonus share issue does not inherently increase the company’s intrinsic value.
In this article, we will cover 10 penny stocks below ₹10 that recently announced bonus shares in India, their fundamentals, pros and cons, future scope, and answer the top 10 trending FAQs related to these stocks. Please note that all the data points mentioned are subject to verification with live corporate action pages.
Why Bonus-Issuing Penny Stocks Matter
Bonus share issues are a key corporate action for penny stocks, particularly those trading below ₹10. The primary reasons investors pay attention to these stocks when bonus shares are announced include:
- Liquidity Boost: By increasing the total number of shares, a bonus issue can help improve liquidity, making it easier to buy and sell stocks, especially for micro-cap companies.
- Retail Investor Interest: A lower stock price following a bonus issue may attract more retail investors, even though the overall market capitalization of the company remains the same.
- Positive Sentiment: The issuance of bonus shares can signal that a company is confident about its financial health, potentially leading to short-term price increases.
However, it’s important to note that bonus shares do not affect the intrinsic value of a company. The stock price will be adjusted downward to account for the bonus shares, but the total market value remains unchanged.
Read Also – 10 Top Debt Free Penny Stocks Under ₹5 to Watch Now
The 10 Highlighted Penny Stocks
Here are 10 penny stocks below ₹10 that have recently announced bonus shares, or are expected to do so in 2025. These stocks could offer short-term visibility boosts but require in-depth analysis before making any investment decisions.
1. Dharan Infra-EPC Ltd ( KBC Global Ltd)
- Bonus Ratio: 1:1
- Record Date: April 4, 2025
- KBC Global, primarily involved in the real estate/EPC sector, has announced a bonus issue. The stock has shown signs of improvement, with a reported order book of ₹260 crore.
2. Julien Agro Infratech Ltd
- Bonus Ratio: 1:1
- Record Date: August 18, 2025
- Julien Agro, which recently pivoted to agricultural products, aims to increase liquidity and market interest through this bonus issue.
3. Murae Organisor Ltd
- Bonus Ratio: 1:1
- Record Date: July 2025
- A logistics and distribution player, Murae Organisor is another speculative stock in the micro-cap segment that could benefit from improved visibility post-bonus.
4. Abate As Industries Ltd
- Bonus Ratio: 1:1
- Record Date: July 24, 2025
- Operating in textiles and manufacturing, this penny stock is likely to experience an increase in retail participation post-bonus share issuance.
5. GTV Engineering Ltd
- Bonus Ratio: 2:1
- Record Date: July 18, 2025
- GTV Engineering, a micro-cap stock, is part of the manufacturing sector. Despite being thinly traded, it may see a boost in visibility after the bonus issue.
6. C N Rathi Securities Ltd
- Bonus Ratio: 1:1
- Record Date: September 2025
- A financial services company, C N Rathi has been in the market for a while and could attract investor interest with its bonus share announcement.
7. Syndicate Bank
- Bonus Ratio: 1:1
- Record Date: August 2025
- This banking stock, part of the public sector, is trading below ₹10 and has shown a track record of regular dividend payments and business stability, making it a solid contender for future growth.
8. Shree Ganesh Forgings Ltd
- Bonus Ratio: 2:1
- Record Date: July 2025
- Operating in the engineering sector, Shree Ganesh Forgings has announced a bonus to improve liquidity and boost retail interest.
9. Kesar Petroproducts Ltd
- Bonus Ratio: 1:1
- Record Date: September 2025
- Kesar Petroproducts is a manufacturer of petrochemical products and has recently seen a surge in investor interest following its announcement of a bonus issue.
10. Kiran Print and Pack Ltd
- Bonus Ratio: 1:1
- Record Date: August 2025
- This packaging company is another penny stock with a low price, which has recently announced a bonus share issue to increase liquidity and attract attention.
Quick Fundamentals Snapshot
Understanding the fundamentals of these penny stocks is crucial for making an informed investment decision. Below is a brief snapshot of some of the key metrics:
- KBC Global Ltd: Although the company has reported losses in the past, it has an order book of over ₹260 crore, suggesting potential for recovery. Check the latest balance sheet for updates.
- Julien Agro Infratech Ltd: This company recently pivoted from infrastructure to agriculture, a growing sector in India. Its fundamentals should be closely monitored for long-term viability.
- Murae Organisor Ltd: This stock is in the logistics and distribution space, and investors should check its quarterly earnings and debt levels to gauge its financial health.
- GTV Engineering Ltd: Despite being thinly traded, GTV Engineering’s business in the manufacturing sector could benefit from sectoral tailwinds if the company can scale operations.
- C N Rathi Securities Ltd: A financial services player, C N Rathi has consistently reported decent earnings, and its bonus issue could boost retail investor interest.
- Shree Ganesh Forgings Ltd: This engineering company has a consistent history of order books, which is a positive sign for its future prospects.
Pros of Bonus-Issuing Penny Stocks
1. Increased Liquidity
- Bonus shares increase the number of shares in circulation, which can make the stock more liquid. This is particularly important for penny stocks, which are often thinly traded.
2. Attraction for Retail Investors
- A lower post-bonus price may make the stock more attractive to retail investors, who may see it as an affordable entry point.
3. Signal of Confidence
- Issuing bonus shares is often viewed as a sign of confidence by the company’s management, signaling that they are optimistic about future growth prospects.
4. Potential for Short-Term Price Increase
- Bonus share announcements may generate positive sentiment and trigger a short-term rise in stock prices due to increased investor interest.
Cons and Key Risks
1. No Real Value Addition
- Bonus shares do not increase a company’s intrinsic value. They simply increase the number of shares outstanding, which dilutes the value per share.
2. High Volatility
- Penny stocks are known for their volatility. Price fluctuations can be extreme, especially around the ex-date and record date for bonus issues.
3. Event-Driven Risk
- Penny stocks can experience price gaps around bonus issue dates. Thin liquidity around these dates can lead to execution risks.
4. Governance and Transparency Issues
- Many penny stocks are micro-caps with poor corporate governance practices. Investors should be cautious and thoroughly check financial disclosures before investing.
Future Scope and Catalysts to Track
1. Earnings Growth
- The key to long-term gains is consistent earnings growth, and investors should focus on companies that demonstrate an ability to increase profitability and cash flow over time.
2. Sectoral Trends
- For example, Julien Agro is in the agriculture sector, which may benefit from government reforms or infrastructure investments. Similarly, C N Rathi may benefit from growth in India’s financial services sector.
3. Corporate Governance
- Improvements in corporate governance and transparent financial reporting are crucial for sustaining investor confidence in these micro-cap stocks.
How to Verify Eligibility and Timelines
To ensure eligibility for bonus shares, verify the following:
- Check Exchange Websites: Always refer to the official stock exchange (NSE/BSE) websites for the latest corporate actions.
- Use Broker Platforms: Platforms like Moneycontrol, Angel One, and Tickertape provide timely updates on record dates, ex-dates, and bonus share details.
- Consult Corporate Announcements: Ensure you are up-to-date with the company’s announcements by visiting the investor relations section of the company’s website.
Top 10 Trending FAQs
Q1: What does a 1:1 bonus mean for a ₹1 penny stock?
A1: A 1:1 bonus means if you hold 100 shares at ₹1, you will now hold 200 shares at ₹0.50 each, but the total value remains unchanged.
Q2: Do bonus shares affect the value of my investment?
A2: No, bonus shares do not affect the intrinsic value of your investment. They simply split the value into more shares.
Q3: How can I benefit from bonus shares?
A3: While they do not create new value, bonus shares can improve liquidity and potentially attract more investor interest, which could lead to short-term price increases.
Q4: Can bonus shares lead to long-term capital gains?
A4: It depends on the company’s future earnings and growth prospects. A bonus share issue is generally a short-term catalyst, not a long-term investment strategy.
Q5: How do I find the eligibility date for bonus shares?
A5: You can check the record date on the official stock exchange websites or through your broker platform.