Radhakishan Damani-owned VST Industries to consider bonus issue; stock up 17%

In a stock exchange notification on July 18, VST Industries said that its board of directors would meet on July 25 to consider the issue of bonus shares.

The board would also discuss the company’s unaudited financial results (standalone) for the quarter ended June 2024 (Q1 FY25).

Following the announcement, the VST Industries stock climbed as much as 17.4% on Friday to hit its all-time high of ₹4,849 on the National Stock Exchange of India (NSE). Year-to-date, the stock has gained more than 42%.

VST Industries is partially owned by ace investor Radhakishan Damani. At the end of the June 2024 quarter, he held a 3.47% stake in the company.

Meanwhile, Damani's flagship investment vehicle, Bright Star Investments, owned a 25.95% stake in VST Industries as of the June quarter, according to the latest shareholding data available on exchanges.

Derive Trading and Resorts Pvt. Ltd, of which Damani is a board member, also holds a 5.24% stake in VST Industries.

Damani had increased his holding in VST industries during the June quarter by buying an additional 2.34 lakh shares, or 1.5% stake in the company, for ₹86.26 crore via a bulk deal. The average share price of the transaction was ₹3,689.96 apiece.

VST Industries is a leading cigarette manufacturing company in India. The company has two manufacturing facilities in Hyderabad. It sells its products through five major brands — Total, Charms, Moment, Special and Edition.