look news india
Bonus Share: Boot manufacturer Redtap Limited has given big news to its investors on Thursday. The company was to consider the interim dividend and bonus shares in the board meeting today and the same has been announced. The company will pay interim dividend to its investors along with bonus shares. Amid this news, RedTap’s share price jumped on Thursday. The stock rose 5% in today’s intraday trading. Its last close was at 869, while the stock’s intraday high was 915.
RedTap Limited has decided to declare interim dividend and bonus shares for the financial year 2024-25. This announcement was made in the meeting of the board of directors of the company held on 26 December 2024. The company has declared an interim dividend of ₹2 per equity share (100%). It is the company’s share of its profits that is given as cash payment to shareholders.
The record date has been set for January 3, 2024. Those holding shares of the company till this date will be eligible for this dividend.
The company has also announced bonus shares. The bonus ratio is 3 new shares for every 1 share (3:1). It will have equity shares of face value Rs 2 each. Total number of shares before bonus: 13,82,01,900 shares and after bonus will be 55,28,07,600 shares.
What is Bonus Share?
Bonus shares are given free to investors. Due to which investors see their stake increasing. The company will announce this bonus from its free reserves. Bonus up to Rs. Fund of Rs 82.92 crore. The company has free reserves of Rs 331.30 crore (as on March 31, 2024).
Dividends provide investors with a direct benefit from company profits. Bonus shares increase investors’ stake and reflect the strong financial position of the company. The process of bonus shares and dividend distribution will be completed after regulatory approval. Details of the record date and distribution date of the bonus shares will be announced after SEBI approval.