Dividends

Bonus shares of 5% means (1:20). If you had 100 shares initially, you would now have 105 shares. After a 5% (or 1:20) bonus, the shareholder would own 105 shares at a total cost of R1,000. However, the cost would decline to Rs 9.52 (R1,000/105).

Additional reading:

• http://www.moneycontrol.com/news/announcements/larsentoubro-approves-bonus-issue12-ratio_877933.html
• About Larsen and Toubro (L&T): http://scholar.valpo.edu/cgi/viewcontent.cgi?article=1095&context=jvbl