Phoenix Mills bonus issue: Stock jumps 5.5% after company announces record date for bonus issue; check details

In a stock exchange notification issued after market hours on Thursday, Phoenix Mills said that the record date for the bonus issue of shares has been fixed as September 21, 2024, subject to shareholders' approval for the issue at the company’s upcoming Annual General Meeting (AGM). The AGM is scheduled to be held on September 13.

This means that shareholders need to have Phoenix Mills shares in their demat accounts on September 21 to be identified as the beneficiaries of the company’s bonus shares.

“The company has fixed Saturday, September 21, 2024, as the ‘record date’ for the purpose of ascertaining the eligibility of shareholders entitled to issuance of bonus equity shares of the company in the proportion of 1 (one) new fully paid up equity share having face value of ₹2 each for every 1 (one) existing fully paid up equity share having face value of ₹2 each, subject to the approval of Shareholders of the company at the ensuing annual general meeting to be held on Friday, September 13, 2024,” the stock exchange filing said.

After the announcement, the Phoenix Mills stock rallied as much as 5.5% to hit an intraday high of ₹3,791.9 apiece on the NSE. However, the share price later trimmed most of its gains to trade higher by 0.60% at ₹3,614 apiece at 2:02 pm. The stock has gained over 12% in the past one month and is up 62% year-to-date.

The Board of Directors of Phoenix Mills approved a bonus issue in the ratio of 1:1 on July 31 while announcing the company’s June 2024 quarter earnings. The company said that shareholders would be credited with one additional share for each existing share they hold.

Phoenix Mills had last issued bonus shares almost two decades ago, in December 2005, in a ratio of 4:1.