Chemicals maker SRF's board on Tuesday approved a bonus issue for its shareholders, who will get four shares for each share held. SRF shares jumped to a record high after the announcement as shareholders cheered the bonus issue.
According to a regulatory filing by the company, investors holding one share of the face value of Rs 10 each on the record date will be issued four equity shares of the same face value. The proposal is subject to shareholders' approval as per rules.
The board of SRF approved the proposed bonus issue at its meeting held on the same day.
SRF shares rose 4.82 percent to close at Rs 10,180 apiece after hitting a 52-week high of Rs 10,354.25 during the session. The SRF stock sharply outperformed the headline Sensex index, which surged 1.16 percent to a record closing high.
The company had on August 20 announced its plan to issue bonus shares to its investors.
The bonus shares will be issued out of the company's securities premium account as of March 31, 2021, when its balance had stood at Rs 736.25 crore, the filing noted. The implementation of the bonus issue requires a securities premium of Rs 236.98 crore, SRF said.
The bonus shares would be credited to eligible investors by October 30 -- two months from the date of board approval.
SRF is a chemical-based multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates.
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