Bonus Issue Alert: These two companies likely to give bonus shares in coming days; check details

City gas distributor Indraprastha Gas Limited shares gained more than 2% to hit an intraday high of ₹394.3 apiece on the NSE ahead of the board meeting to consider the proposal for issue of bonus shares.

On the other hand, smallcap company Thinkink Picturez Limited also saw a rally in its stock price following the momentum after the recent announcement of the meeting of its board of directors to consider a bonus issue proposal. Shares of Thinkink Picturez were locked in the 5% upper circuit at ₹2.03 apiece on the BSE.

IGL board meet on December 10 to consider bonus issue

In a stock exchange filing last week, the company announced its board of directors will meet on December 10 to consider a bonus issue proposal.

“A meeting of the Board of Directors is scheduled to be held on December 10, 2024, inter-alia to consider the proposal for the issue of Bonus Shares to the equity shareholders of the Company in the ratio, as may be fixed, subject to the shareholders' approval," the company informed the bourses on December 4.

If the board approves the bonus issue, IGL will become the first city gas distributor to issue free shares.

This is also the company’s first bonus issue. Earlier, in 2017, the company announced a stock split. Each share with a face value of ₹10 was divided into 5 units with a face value of ₹2 apiece.

City gas distributor reported nearly an 18% year-on-year decline in net profit at ₹454.17 crore in the September quarter (Q2FY25) as against ₹552.67 crore in the year-ago period. Its consolidated total income stood at ₹4,171 crore in Q2FY25, down nearly 7% against ₹3,884 crore in Q2FY24.

The company’s board also declared an interim dividend of ₹5.50 per share, 275% of face value of ₹2 each, for the financial year 2024-25.

Thinkink Picturez shares hit 5% upper circuit on bonus issue

Thinkink Picturez Ltd has hit an upper circuit for a third consecutive session on Tuesday, December 11, jumping almost 15% cumulatively during this period.

Last week, on December 5, Thinkink Picturez announced that the company would consider a bonus issue and dividend at its upcoming board meeting on December 16.

“The Board will consider a proposal to issue 2 bonus shares for every 1 share held by eligible shareholders. This initiative reflects the company’s commitment to rewarding its shareholders for their trust and support, while also enhancing the liquidity of its stock in the market,” the company informed the bourses.

The notification added that the board will also deliberate on a proposal to declare a 100% dividend on equity shares, underscoring the company’s strong financial performance.

Additionally, the company said that the board of directors will evaluate a strategic proposal to expand into the global entertainment market by venturing into Hollywood.

In a follow-up development, Thinkink Picturez announced on Monday, December 9, that it was launching its exclusive OTT platform, ThinkStream. The streaming platform will feature premium-quality web series and short films exclusively produced and streamed by Thinkink Picturez, along with selected Korean drama series and movies.

The company said that the development, deployment, and marketing of ThinkStream will be backed by an investment of ₹20-25 crore, allocated in four tranches. The company will share details regarding the platform's launch date, subscription plans, and potential partnerships later.

Adding to a spree of announcements, Thinkink Picturez on Tuesday, December 11, shared significant strategic updates regarding its Dubai-based subsidiary, Think Star Entertainment Technology Llc. These included announcements on the start of production on multiple dedicated cinematic universe movies and web series at an investment of approximately AED 71 million (equivalent to ₹164 crore) and securing three major contracts for post-production and dubbing services, valued at AED 50 million (approximately ₹115 crore).