Shares of IndiaMART InterMESH jumped 2.72 percent to trade at Rs 5,391.20 in Friday's noon deals after the company announced a bonus issue of equity shares to investors in the proportion of 1:1.
"The board recommended issue of bonus shares to the equity shareholders of the company in the proportion of 1 (one) equity share of Rs 10 each fully paid up for every 1 (one) existing equity share of Rs 10 each fully paid up held as on the record date, subject to the approval of the shareholders in the ensuing AGM," the company said in a regulatory filing.
For every one share held, the company will be giving out one bonus share issue to the eligible shareholders.
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors.
Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them. The number of bonus shares you receive depends on the number of shares of the firm you already hold.
All shareholders who own shares of the company before the ex-date, which is determined by the firm, are eligible for additional shares.
Apart from the bonus issue, IndiaMART InterMESH has announced its fourth quarter results today. The firm has reported a consolidated net profit of Rs 56 crore for the fourth quarter ended March, down marginally from Rs 57 crore in the year ago period.
The company's revenue from operations jumped about 34 percent to Rs 268 crore for the reporting period. It was Rs 201 crore in the corresponding period of last year.
The company has also recommended a a final dividend of Rs 20per equity share of face value of Rs 10 each for fiscal FY23. The dividend will be paid within 30 days from the date of declaration and approval of final dividend by the shareholders of the company.
First Published: Apr 28, 2023 3:36 PM IST
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