Godfrey Phillips India shares surged as much as 11 percent and hit a record high of Rs 7,430.95 on September 13 in the run-up to the company's board meeting to discuss the proposal for a bonus issue. The company stated that its board will meet on September 20 to approve the bonus issue in the ratio of 2:1, meaning two bonus shares will be issued for each share held.
Since each investor owning the stock as of the record date will be eligible to receive two bonus shares for each one they hold, it triggered a spike in buying within the counter. This strong buying also helped the stock deliver a second straight day of solid gains. The shares of the company had been on a three-day decline before the gains seen in the previous session.
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Last week, the company was also in the spotlight after Bina Modi secured her reappointment as the Managing Director of Godfrey Phillips at its 87th Annual General Meeting, supported by 86.64 percent of shareholders. This development came at a time when the company was embroiled in an ongoing family dispute.
On September 5, the Delhi High Court ruled in favour of Bina Modi, allowing her to vote on behalf of the KK Modi Family Trust, which holds nearly 48 percent of the company's shares. This decision was opposed by her son Samir and grandson Ruchir, who sought to prevent her from exercising the trust’s voting rights at the AGM. However, the court dismissed their objections.
Samir, who had previously held the position of Executive Director, was ousted from the board through a shareholder vote. The decision to leave his board seat vacant received overwhelming support, with over 99.3 percent of shareholders in favour of the move.
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