Cigarette manufacturer Godfrey Phillips India Ltd announced on Friday that its board will consider issuing bonus shares to existing shareholders in a 2:1 ratio. The company disclosed in a regulatory filing that the board of directors will meet on September 20, 2024, to discuss the proposal and seek shareholder approval.
The proposed bonus issue would grant shareholders two new fully paid-up equity shares of Rs 2 each for every existing fully paid-up equity share of Rs 2. The company plans to finance the bonus shares by capitalising reserves.
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As per the company's filing on the exchange, " we wish to inform that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, 20th September 2024 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 2:1 i.e. 2 (Two) new fully paid-up Equity Shares of Rs. 2/- each for every 1 (One) existing fully paid-up Equity Share of Rs. 2/- each, to the Equity Shareholders of the Company by capitalization of reserves."
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Following the news, the shares of Godfrey Phillips India jumped over 10 per cent and closed at Rs 7204.35. The 52 week high and low of the share is Rs 7,320 and Rs 1,994.90 respectively.
According to the BSE analytics, the shares have given returns of 127.97 per cent in the last 6 months, 242.58 per cent in the last 1 year and bumper returns of 583.10 per cent in the last 2 years.
The move is expected to benefit existing shareholders by increasing their equity stake at no additional cost, a common corporate strategy to enhance investor confidence and liquidity.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)