Bonus shares 2024: Small-cap shares Redtape announced on Thursday, December 26 that its board of directors approved the dividend payment and the issuance of bonus shares at its meeting held today.
The company’s board proposed issuing bonus shares to shareholders at a ratio of 3:1. This means that investors will receive three new, fully paid shares ₹2 each for each existing share they own.
The company informed the stock exchanges that there were 41,46,05,700 shares of it ₹2 each would be issued as bonus shares. The corporate relocation is subject to the approval of the company’s members. The company has not yet announced the record date for the issuance of bonus shares.
In addition, Redtape has also announced an interim dividend for its shareholders ₹2 each.
“The Board of Directors has determined and approved an interim dividend of €3 ₹2 (100%) per share of stock ₹2/- each for the financial year 2024-25,” the company said in a filing. Furthermore, the company has set January 3 as the record date for determining the shareholders eligible for the said interim dividend.
Stock impact
Following the corporate action announcements by the company, Redtape shares witnessed a spike.
The Redtape share price rose 5.25 percent to the highest point of the day ₹915 each on the BSE. The shares opened at ₹879 per share at the closing price of ₹869.30.
The stock is trading just 7 percent away from its 52-week high ₹981.80, while more than doubling from the 52-week low of ₹454.75.
Redtape is part of the BSE Smallcap index and has a market capitalization of almost ₹12,400 crore.
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