Bonus Issue Alert: Kitex Garments to issue 2 free shares for each share held, check details

In a filing to the stock exchanges, the Kerala-based kids’ wear manufacturer said that its Board of Directors approved the issuance of bonus shares in the ratio of 2:1 at the meeting held on Friday, November 22.

The company informed the bourses that, as a part of the bonus issue, the eligible shareholders will receive two new fully paid equity shares of a face value of ₹1 each for every share held by them as of the record date.

The company said that the issue of bonus shares is subject to the approval of shareholders and the record date for determining eligible shareholders entitled to the free shares will be decided in due course of time. However, the company said that the bonus shares will be credited to the Demat accounts of eligible shareholders on or before January 20, 2025.

Kitex Garments informed the exchanges that its pre-bonus paid-up share capital stood at ₹6.65 crore and consisted of 6.65 crore shares of a face value of ₹1 each. Its paid-up capital is expected to increase to ₹19.95 crore after the bonus issue, consisting of 19.95 crore shares of a face value of ₹1 each.

According to the company, ₹13.3 crore will be appropriated from the company’s general reserve or retained earnings for the issue of bonus shares.

Kitex Garments declared its last bonus issue in 2017. The company issued bonus shares in the 2:5 ratio in November 2017.

Kitex Garments’ shares have rallied over 205% in the last one year. The stock has given year-to-date returns of more than 183%. In the last six months, shares of the company have gained over 201%, while rising 34% in the past month.

Shares of Kitex Garments closed at ₹636.7 apiece, down by 4.55%, on the NSE on Friday.