InfoBeans Technologies’ 3:1 bonus issue means every existing shareholder will receive 3 new shares for each 1 share held, quadrupling the share count while keeping the company’s overall value unchanged at the moment of issue.

What the 3:1 bonus means

• The board has approved a bonus in the ratio of 3:1, i.e., 3 fully paid bonus equity shares of face value ₹10 for every 1 existing fully paid equity share of ₹10.

• The record date to determine eligible shareholders is 27 February 2026; investors holding InfoBeans shares at the end of this date will receive the bonus shares.
• Post‑bonus, the number of equity shares will rise from 2,42,39,860 to 9,69,59,440, as the company capitalises retained earnings and securities premium to issue new shares.
• The bonus issue is subject to shareholder approval via postal ballot and necessary statutory/regulatory approvals.

Impact on price, holdings and fundamentals

• In theory, the share price adjusts down by roughly the bonus factor on the ex‑bonus date: post 3:1 bonus, the price should be close to one‑fourth of the pre‑bonus level (ignoring market sentiment).

• Your total investment value does not change immediately; you own 4x the number of shares (1 original + 3 bonus), at about one‑fourth the price, so the market value should be similar right after the adjustment.
• Earnings per share (EPS), book value per share and dividends per share will mathematically fall in line with the increased share count, even though the company’s absolute profits and net worth are unchanged.
• Market perception can still move the stock—bonus issues are often read as a confidence signal from management, especially when accompanied by strong quarterly results, which InfoBeans reported in Q3 FY26 (revenue up 38% YoY, PAT up 173% YoY).

Strengths

• Signals management confidence in the business after a strong Q3 FY26 (sharp growth in revenue, EBITDA and PAT).
• Improves liquidity by increasing the free‑float share count from ~2.42 crore to ~9.70 crore equity shares.
• Lower post‑bonus trading price can make the stock appear more affordable per share, drawing in smaller investors.
• Bonus funded via retained earnings and securities premium reflects accumulated profits and balance‑sheet strength.
• Keeps existing shareholders’ percentage ownership unchanged, as everyone gets bonus shares in the same ratio.

Risks and caveats for investors

• Bonus does not change intrinsic value—valuation must still be judged on earnings growth, margins and cash flows, not just on the lower price.

• EPS and per‑share metrics fall post‑bonus; if growth slows, the stock can de‑rate even after the corporate action.
• Short‑term volatility around record/date and ex‑bonus date can increase, with traders booking profit or speculating on the move.
• If the stock was already trading at a rich P/E, the bonus may not justify further upside and could attract profit‑taking.
• High expectations built around the bonus and strong Q3 numbers can backfire if future quarters fail to maintain growth momentum.

FAQs

1. What does a 3:1 bonus issue by InfoBeans mean?

• It means shareholders will receive 3 new fully paid bonus shares for every 1 share they already own, so each shareholding becomes 4 times the original quantity.

2. What is the record date for InfoBeans’ 3:1 bonus shares?

• InfoBeans has fixed 27 February 2026 as the record date to determine which shareholders are eligible for the bonus equity shares.

3. Will the InfoBeans share price fall after the bonus issue?

• On the ex‑bonus date, the price is expected to adjust down in proportion to the bonus ratio (around one‑fourth in this case), but your overall investment value should remain broadly the same initially.

4. Do investors need to pay anything for InfoBeans’ bonus shares?

• No, bonus shares are issued free of cost, funded from the company’s reserves and securities premium; you only need to hold shares on the record date.

5. Is a 3:1 bonus issue always positive for InfoBeans investors?

• It is a technical change that improves liquidity and may signal confidence, but long‑term returns will still depend on InfoBeans’ revenue growth, margins, cash flows and valuation after the bonus.