Self Help Documentation
How is a Bonus Issue different from a Rights Issue?
| Feature | Bonus Issue | Rights Issue |
| Cost to shareholders | Free of cost | Requires additional payment |
| Purpose | Reward shareholders, increase liquidity | Raise capital for expansion or debt repayment |
| Source of shares | Free reserves & retained earnings | Newly issued shares for capital infusion. |
| Dilution impact | No immediate dilution (as all get shares proportionally) | Can dilute equity if the shareholders do not subscribe. |