Godfrey Phillips Jumps 3% after 2:1 Bonus Issue Approval
In a significant development, Godfrey Phillips India, a leading tobacco company, has seen its stock price surge by 3% after its board of directors approved a 2:1 bonus issue. This means that for every share you own, you’ll receive two bonus shares, subject to the approval of shareholders. The bonus shares will be issued from the company’s reserves and will apply to fully paid-up equity shares of ₹2 each.
The news has sent a positive signal to the market, with investors eagerly awaiting the outcome of the bonus issue. The company’s decision to issue bonus shares is likely to increase the liquidity of its shares and make them more attractive to investors.
Godfrey Phillips India’s stock price has been on an upward trend in recent times, driven by strong financial performance and a growing demand for its products. The company’s revenue has been increasing steadily, driven by its diverse product portfolio and expanding distribution network.
The company’s financial performance has been impressive, with its revenue growing by 12% year-on-year to ₹4,143 crore in the fiscal year ended March 2022. Its net profit also grew by 15% to ₹541 crore, driven by a 10% increase in operating profit.
The company’s strong financial performance is attributed to its diversified product portfolio, which includes cigarettes, chewing tobacco, and other tobacco products. Its brands, such as Red & White, Cavendish, and Four Square, are well-known and popular among consumers.
The company’s decision to issue bonus shares is likely to increase the liquidity of its shares and make them more attractive to investors. The bonus shares will be issued from the company’s reserves, which are a surplus of profits that the company has accumulated over time.
The bonus issue is expected to increase the company’s share capital, which will lead to an increase in the number of shares outstanding. This, in turn, is likely to increase the liquidity of the shares and make them more attractive to investors.
The company’s decision to issue bonus shares is also likely to benefit its shareholders, who will receive additional shares for every share they own. This will increase their stake in the company and provide them with more voting rights.
In addition to the bonus issue, the company has also announced a dividend payout of 50% for the fiscal year ended March 2022. This is likely to provide further returns to its shareholders and increase their interest in the company.
In conclusion, Godfrey Phillips India’s decision to issue a 2:1 bonus issue is a positive development for the company and its shareholders. The bonus shares will increase the liquidity of the shares and make them more attractive to investors. The company’s strong financial performance and growing demand for its products are likely to drive its growth in the future.
Source: https://tradebrains.in/21-bonus-shares-midcap-stock-jumps-3-after-board-approves-bonus-issue/
