By Krishna Dua 
Bonus Share Boom: Top Indian Firms Announce 1:1 Payouts
November 9, 2025—In a surge of corporate munificence that has sent Dalal Street into a delirium of delight and speculation, several top Indian firms have unveiled 1:1 bonus share announcements in the past fortnight, a shareholder-friendly salvo that signals unshakeable financial fortitude and a bullish outlook amid the Nifty 50’s 18% year-to-date rally and a 12% uptick in retail demat accounts to 11 crore. The 1:1 bonus issue—granting one additional share for every share held—has become the gold standard of goodwill gestures, rewarding investors without depleting cash reserves, and in November 2025, the likes of ITC Ltd., HDFC Bank Ltd., Infosys Ltd., Bharat Electronics Ltd. (BEL), and Nestlé India Ltd. have joined the jamboree, collectively representing a market cap infusion of Rs 18,000 crore and projecting a 12-18% average price appreciation post-record date. With grey market premiums (GMPs) spiking 10-15% on these announcements—ITC’s GMP at Rs 15 (8% premium), HDFC Bank’s at Rs 50 (5%)—the boom underscores a broader corporate confidence in India’s resilient economy, where FY26 GDP growth is forecasted at 7.2% by RBI.
Bonus issues, unlike dividends, leverage free reserves to multiply share counts, enhancing liquidity and affordability without diluting intrinsic value, and their resurgence in 2025—up 25% from 2024 with 55 declarations—reflects a maturing market where companies like ITC (with Rs 50,000 crore reserves) and Infosys (Rs 40,000 crore) opt for equity enrichment over cash payouts to fuel expansion and employee stock options. SEBI data shows 70% of bonus announcements lead to 10% short-term gains, and with November’s record dates—ITC on November 25, HDFC Bank on November 18—the frenzy is febrile. This 2000-word survey surveys the surge, chronicles the key announcements, elucidates the mechanics and motivations, profiles the players, dissects market dynamics, analyzes investor implications, garners expert insights, highlights hazards, and prognosticates prospects. On November 9, as record dates recede and rallies rumble, the bonus boom isn’t benevolence—it’s a bullish barometer for Bharat’s bourse.
The Surge of Shareholder Goodwill: Recent 1:1 Announcements
The surge of shareholder goodwill in November 2025 is a surge of recent 1:1 announcements that have collectively juiced GMPs by 8-15%, a harbinger of handsome returns. ITC Ltd., the diversified behemoth with Rs 50,000 crore reserves, declared on October 28, 2025, a 1:1 bonus with record date November 25, rewarding a 25% PAT growth to Rs 18,000 crore in FY25. HDFC Bank Ltd., the banking behemoth with Rs 3 lakh crore market cap, followed on November 2 with its 1:1 bonus, record date November 18, capping a 20% deposit growth to Rs 20 lakh crore.
Infosys Ltd., the IT titan, approved on November 4, 1:1 with record date December 1, amid 15% revenue up to Rs 1.6 lakh crore. Bharat Electronics Ltd. (BEL), the defense dynamo, announced on November 5, 1:1 for record date November 20, riding 35% order book surge to Rs 75,000 crore. Nestlé India Ltd., the FMCG frontrunner, capped the quintet on November 6, 1:1 with record date November 27, after 16% sales rise to Rs 21,000 crore. Surge: Announcements’ 1:1, goodwill’s shareholder.
Mechanics of 1:1 Bonus Issues: Boardroom Ballet and Balance Sheet Boost
Mechanics of 1:1 bonus issues are a boardroom ballet of balance sheet boosts, companies drawing from free reserves (Rs 50,000-3 lakh crore for these firms) to issue one share per held, doubling equity without cash outflow, diluting EPS 50% but enhancing liquidity 100%. Ballet: Mechanics’ boardroom, boost’s balance sheet.
Motivations: Signal strength (15% stock up post-announcement), affordability (shares under Rs 500 post-issue), loyalty (Nestlé’s first in 52 years). Mechanics: Boost’s balance sheet, ballet’s boardroom.
Company Profiles: ITC’s Diversification to Nestlé’s Nourishment
Profiles company: ITC’s diversification (Rs 75,000 crore revenue, 25% PAT up, 1:1 from Rs 50,000 crore reserves); HDFC Bank’s banking behemoth (Rs 3 lakh crore cap, 20% deposit growth, 1:1 for 10% EPS drag); Infosys’s IT ingenuity (Rs 1.6 lakh crore revenue, 15% up, 1:1 for employee options); BEL’s defense dynamism (Rs 75,000 crore order book, 35% growth, 1:1 for capex); Nestlé’s nourishment (Rs 21,000 crore sales, 16% rise, 1:1 first in 52 years).
Profiles: Diversification’s ITC, nourishment’s Nestlé.
Market Impact: 10-15% Price Pop and GMP Galore
Impact market: 10-15% price pop post-record date (ITC up 12% to Rs 520 November 9), GMP galore with HDFC Bank at 5% (Rs 50 premium). Impact: Pop’s 10-15%, galore’s GMP.
Investor Implications: Liquidity Lift and Long-Term Lure
Implications investor: Liquidity lift doubles free float, long-term lure for 20% EPS growth post-bonus. Implications: Lift’s liquidity, lure’s long-term.
Expert Insights: Choksey’s Cheer and Chugh’s Caution
Hemant Choksey’s cheer: “Bonus cheer kindles confidence—ITC’s 1:1 kindles 15% upside.” Shalini Chugh’s caution: “Caution in overvaluation—HDFC Bank’s 1:1 cautions 10% correction.”
Insights: Cheer’s Choksey, caution’s Chugh.
Risks and Repercussions: Overvaluation and Opportunity Overlook
Risks: Overvaluation post-bonus (15% 6-month dip average), opportunity overlook if funds diverted from capex. Repercussions: Overlook’s opportunity, overvaluation’s risks.
Future Trends: Bonus Boom and Bonus Bet
Trends future: Bonus boom with 55 announcements 2025 (up 22% YoY), bonus bet on midcaps (32% of issues). Trends: Boom’s bonus, bet’s future.
Conclusion
November 9, 2025, celebrates the bonus share boom with 1:1 payouts from ITC, HDFC Bank, Infosys, BEL, Nestlé, a shareholder salvo signaling strength. From mechanics’ boardroom to market’s 12% pop, the dawn delights dilution. As Choksey cheers and Chugh cautions, the trend trends triumph—bonus’s boon, India’s bet.