VST Industries hit 20% upper circuit as stock turns ex-bonus today; check details

Shares of Radhakishan Damani-backed VST Industries Ltd. were locked in a 20% circuit at ₹486.15 apiece on the NSE. The stock also snapped its four-day losing run. In the four straight days to Thursday, shares declined by 2.4%, ahead of the record date of the bonus issue on September 6.

The stock was also locked in a 20% circuit on BSE at ₹486.70 against the last close of ₹405.60 per share.

Shares purchased before the record date are eligible for benefits from corporate actions such as bonus issue, dividends and stock splits.

VST Industries, in which ace investor Radhakishan Damani holds a 34% stake, has announced a bonus issue of 10:1, or 10 bonus shares for every one share held by shareholders.

The stock price of the company was reduced by the same proportion, making it more affordable for public investors.

VST Industries has announced the bonus share issue for the first time. It received in-principle approval from stock exchanges for the bonus issue on September 2 (Monday).

Damani, with a little over 34% stake in the tobacco products maker, would be the largest beneficiary of the bonus issue. Damani had earlier divested a 2.26% stake in VST Industries ahead of the June quarter results. The company announced the financial results and the bonus issue of shares on July 25.

VST Industries reported a 3.5% decline in its revenue to ₹321.33 crore for the April-June quarter quarter of FY25 compared to the year-ago period.

Its EBITDA declined by 30.4% year-on-year to ₹73.28 crore in the June 2024 quarter.

The company had announced a final dividend of ₹150 per share for FY2023-24 in June.

At around 1:00 PM, shares of VST Industries were trading at ₹481.85 apiece, up by 18.93% on NSE.