Bajaj Auto plans bonus shares

Nearly 13 years after it last issued bonus shares, India's second largest two-wheeler maker Bajaj Auto on Wednesday said that it is planning a similar move -- for which its board will meet on July 22.

The announcement drove the company's scrips to an all-time high of Rs 2,461.70 per share on the BSE during the afternoon trade, up 2.15 per cent from the previous close.

"A meeting of the board of directors of the company will be held on July 22, 2010, to consider a proposal for declaration of bonus shares, subject to approval by shareholders," Bajaj Auto Ltd said in a filing to the Bombay Stock Exchange.

The company, however, did not elaborate on the details of the bonus shares to be issued.  According to information available on the official website, the last time Bajaj Auto Ltd (now known as Bajaj Holdings and Investments Ltd) had made an announcement of the sort was in October 1997, when it issued bonus shares in the ratio of 1:2.

Bajaj Auto had also issued bonus shares in the 1:1 ratio in 1994, 1991, 1988, 1984 and 1976. In 1971 and 1973, the company had issued bonus shares in the 1:2 ratio.

The biggest bonus share from the company till date was in 1967, when it issued five new shares for every one held in the company.