The offer of new shares to existing shareholders at no cost, in proportion to the amount of their current holding, is known as:

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A bonus issue, also known as a scrip issue or capitalization issue, is when a company offers new shares to its existing shareholders without them having to pay anything for them. These new shares are issued in proportion to the amount of shares already held by the shareholder. This is a way for the company to reward its shareholders, increase liquidity in the market, and dilute the value of the shares without affecting the interests of existing shareholders.

The Offer of New Shares to Existing Shareholders at No