This small-cap stock announces bonus shares in 3:1 ratio, ₹2 interim dividend | Stock Market News
Source: Live Mint
Bonus shares 2024: Small-cap stock Redtape on Thursday, December 26 announced that its board has approved dividend payout and bonus share issue at its meeting held today.
The company’s board proposed to issue bonus shares to its equity shareholders in the proportion of 3:1. This means investors will get three new fully paid-up equity shares of ₹2 each for every one existing share held by them.
The company informed bourses that 41,46,05,700 equity shares of ₹2 each would be issued as bonus shares. The corporate move is subject to the approval of members of the company. The company has yet to announce the record date for the bonus share issue.
Apart from this, Redtape also announced an interim dividend for its shareholders of ₹2 apiece.
“The Board of Directors has declared and approved an interim dividend of ₹2 (100%) per equity share of ₹2/- each for the financial year 2024-25,” the company said in a filing. Furthermore, the company has fixed January 3 as the record date for the purpose of determining shareholders eligible to receive the said interim dividend.
Stock Impact
Following the corporate action announcements by the company, Redtape’s stock witnessed a spike.
Redtape share price jumped 5.25 per cent to the day’s high of ₹915 apiece on the BSE. The stock opened at ₹879 per share as against the closing price of ₹869.30.
The stock trades just 7 per cent away from its 52-week high of ₹981.80 while it has more than doubled from its 52-week low of ₹454.75.
Redtape is part of the BSE Smallcap index and has a market capitalization of nearly ₹12,400 crore.
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