IOC issues 1:1 bonus means?

http://IOC Q1 net profit up 25.4% YoY to Rs 8,270 crore; board approves 1:1 bonus via The Economic Times App(Download Now):

It means that for every one share held by you, you’ll get one extra share.

So, if you’re holding 100 shares, after the bonus, you’ll have 200 shares. Although the number of shares increase, you don’t stand to make any additional money because the bonus gets adjusted in the price. This means that the price of IOC will drop in half.

Why does a company give Bonus:

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Hi @VenuMadhav , Can we sell the shares after the ex bonus date(after the price is adjusted) and before the bonus shares are credited to our demat account or do we need to wait till the bonus shares are credited to our account?