This RK Damani-owned stock zoomed 20%; turned ex-date for 10:1 bonus
Source: Business Standard
Illustration by Binay Sinha
The stock of the cigarette manufacturer has turned ex-date for 10:1 bonus issue. It surpassed its previous high of Rs 447.50 (adjusted to bonus) that it touched on August 27.
In comparison, the BSE Sensex was down 0.23 per cent at 82,014.
VST Industries has fixed Friday, September 6, 2024, as the record date for the purpose of determining the shareholders who shall be entitled for allotment of bonus equity shares in the ratio of 10:1, that is 10 new equity shares for every one share held by them.
Investor Radhakishan Shivkishan Damani held 3.47 per cent stake in VST at the end of June quarter. Meanwhile, Damani, along with his flagship investment vehicle, Bright Star Investments, Derive Trading and Resorts Private Limited, and others, had held a 33.92 per cent stake in the company.
Post transaction, their holding in the company has declined to 31.52 per cent, data shows. CLICK HERE FOR FULL DETAILS
The company operates five major cigarette brands, inlcuding Total, Charms, Moment, Special, and Edition, along with a direct distribution channel that reaches over 1.2 million outlets.
With a stable tax regime, the leading brands in the industry have kept prices unchanged for several years, causing structural change of premiumisation in the industry. The industry has witnessed intensified competition, with price-based competition from both new brands as well as existing players.
Moreover, the unprecedented raw material cost inflation and intensified competition has put pressure on the company’s margins in the short run. However, these were mitigated partially through restructuring business processes and leveraging digitisation for efficiency improvements, VST Industries said in its FY24 annual report.
With green shoots visible in rural markets, and the expectation of a favourable monsoon, the management said it is looking forward to greater buoyancy in rural demand for its entire brand portfolio.
First Published: Sep 06 2024 | 10:15 AM IST
