VST Industries announces 10:1 bonus issue, sets August 30 as the record date

The board has fixed August 30, 2024 as the record date to determine the eligibility of members to receive bonus shares. The company said that free reserves of ₹154.41 crore will be used to implement the bonus issue and over 15.44 crore equity shares will be issued. The firm’s aggregate amount of reserves including capital redemption reserve stands at ₹1,233.90 crore.

The post-bonus paid-up share capital will be ₹169.86 crore divided into 16.98 crore shares, it said.

The firm has been in news lately after ace investor Radhakishan Damani pared his stake in the company. According to media reports, Damani sold 2.26% stake in the firm through block deals. Meanwhile, the company also declared its first quarter results on Thursday.

Revenue from operations fell 3.85% on a year-on-year (YoY) basis to ₹423.86 crore during the first quarter. Total revenue declined 4.41% to ₹432.94 crore while net profit fell 36% to ₹53.58 crore.

Earnings before interest, tax, depreciation, and amortization (EBITDA) fell 30.44% to ₹73.28 crore during the quarter.

VST Industries is involved in the manufacturing and sale of cigarettes and unmanufactured tobacco. The firm has a manufacturing facility in Hyderabad and Toopran, Telangana. VST Industries also notified that Rajiv Gulati has completed his term of five years as an independent director of the firm and ceased to be a director with effect from the closing hours of July 25.

Shares of the companies have gained over 21% since the beginning of the year. The stock has risen over 11% in the last one year.