GM Breweries stock moves up as company shares update on bonus issue allotment

Liquor maker GM Breweries’ shares moved up on the bourses on Monday, May 13, after the company announced the date when its board of directors would be meeting for the allotment of bonus shares.

The shares touched an intraday high of ₹762.5 apiece on the National Stock Exchange, up 2.8% as against the last closing price, shortly after the company informed the stock exchanges that its board will be meeting on May 27 for the allotment of shares under the bonus issue.

After clocking the intraday high at around 10:50 am, the shares pared some of the gains in the next couple of hours. At 1:15 pm, the scrip was valued at ₹746.3 apiece.

1:4 bonus issue

For the bonus issue, a total of 45.69 lakh shares will be issued by the company, it had added. An amount of ₹4.56 crore would be capitalised from free reserves for the issue, the company had further informed the exchanges.

Apart from the bonus issue, GM Breweries had also announced an interim dividend of ₹7 per equity share of face value of ₹10.

Meanwhile, the company’s performance in the fourth quarter came under the scanner due to a weak operational margin.

Even though the company reported a standalone net profit of ₹86.6 crore in Q4 FY24, more than double as against ₹35.1 crore a year ago, the revenue from operations grew marginally to ₹623 crore from ₹603 crore in the year-ago period, and from ₹618 crore in the preceding quarter.

The surge in profit was mainly driven by an increase in other income, which came in at ₹70 crore as compared to ₹15 crore in the Q4 FY23 and ₹6.8 crore in Q3 FY24.