Bonus shares 2024: Kitex Garments board approves proposal to issue bonus equity shares in 2:1 ratio | Stock Market News
Source: Live Mint
Bonus shares 2024: Kitex Garments on Friday, November 22 announced that its board has approved a bonus share issue in the ratio of 2:1. It means the company is offering two new fully paid equity shares for every existing share held by the shareholders.
The company plans to finalise and announce the “record date” to determine eligible shareholders in due course.
Kitex Garments share price was trading in the red, down 3.92 per cent at ₹642.80 on November 22 at 1:43 pm on BSE. The company enjoys a market capitalisation of ₹4,274.62 crore.
“The Company proposes to issue Bonus Equity Shares in the ratio of 2:1, i.e., 2 (Two) new fully paid equity shares of ₹1/- each for every 1 (One) existing equity share of ₹1/- each held as on the Record Date by the shareholder, subject to the approval of the shareholders of the Company through Postal Ballot,” the company said in an exchange filing.
Impact on Equity Capital
Kitex Garments currently has a paid-up equity share capital of ₹6.65 crore, comprising 6.65 crore shares of Re 1 each. For the bonus issue, the company will allocate ₹13.30 crore from its general reserve or retained earnings. Once completed, the paid-up equity share capital is expected to rise to ₹19.95 crore, reflecting 19.95 crore shares of Re 1 each.
According to the company, the bonus shares will be credited to eligible shareholders within two months of board approval, no later than January 20, 2025.
Financial performance
Kitex Garments reported impressive growth in Q2 FY25. Its consolidated net profit surged by 181.39 per cent year-on-year, reaching ₹37.34 crore. This was supported by a 61.15 per cent increase in sales, which climbed to ₹215.88 crore compared to Q2 FY24.
Shifting its focus beyond domestic operations, the company continues to export cotton garments, primarily infant wear, across global markets. Kitex operates in two segments: garments and fabric manufacturing.
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