Issue of bonus shares by companies in India increased 40% in the first 10 months of the current fiscal year compared to the previous year, after declining for two straight years. 61 companies have issued or announced bonus shares so far this year. Bonus shares are free additional shares given to existing shareholders as a way to reward them and increase the company's equity base, indicating management confidence in future profit growth and dividend payouts on more shares. The rise in bonus shares issued reflects a positive sentiment in the corporate sector and the ongoing recovery of the Indian economy.