BRITANNIA-N3 Bonus Shares

Today BRITANNIA bonus shares are showing in Kite with Script Name as BRITANNIA-N3. The LTP is Rs.29.26.
But the share price of Britannia is around Rs.3443. can you please help me understand why the bonus shares are trading at a very low cost?

These are not bonus shares. These are bonus debentures issued by Britannia.

This post explains about bonus debentures in detail: An introduction to bonus debentures

What is the coupon rate? When does the interest gets credited to the bank account? What are the total years of the bond (maturity)?

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Explained here:


Thank you for the Response. one more quick question, if I buy these debentures, Still the 8% interest is applicable for newly bought shares or it is applicable only for Britannia debentures shares.

You’ll be eligible to receive the 8% interest if you buy debentures from secondary market.

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Hi @ShubhS9

I have few questions.

  1. Can i buy the debuntures from open market even if i am not a Britannia share holder ?
  2. is the interest paid to my bank a/c directly ?
  3. how is the taxation on returns ?
  4. is the returns are pro-rated ? (if i hold for 6 months and sell it, will i get 6 months worth of interest at the end of the year?)

Yes, you can.

Yes, the interest payment frequency in annual and will be paid directly to your primary bank account.

You can learn all about taxation on bonds and debentures here.

Bonds in secondary market are traded at dirty price, this will include the accrued interest for your holding period. You can refer to this chapter on Varsity for more information.

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That is right. They are bonus debentures. @shubhS9 the link you have shared is quite informative.

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@ShubhS9 I have 1 Bonus Britannia N3 in DEMAT. LTP is showing 29.0 INR.
How much interest I will get if I hold it up to or more than one year?