Radhakishan Damani stock VST Industries skyrockets 20% on ex-bonus trading

VST Industries received in-principle approval from BSE and NSE for the issuance and proposed allotment of 15 crore equity shares as bonus shares. The bonus shares will be issued in a 10:1 ratio.

Shares of cigarettes & tobacco products maker VST Industries surged 20 percent to hit the upper circuit as the stock traded ex-bonus. The company had announced the issue of 10 bonus shares for every one share held as of the record date (September 6). This is the first issue of bonus shares that VST Industries has announced.

The record date is the specific day a company identifies which shareholders are eligible for benefits from corporate actions such as dividends, bonuses, stock splits, or share buybacks.

VST Industries received in-principle approval from BSE and NSE for the issuance and proposed allotment of 15 crore equity shares as bonus shares.

Radhakishan Damani will be among the top winners of this bonus issue as the ace investor held 34.7 percent equity stake in the company as of June 30, 2024. Damani had sold a 2.26 percent stake in VST Industries via block deals ahead of the Q1FY25 results and the announcement of the bonus issue of shares in July.

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The cigarette maker reported a 3.5 percent on-year drop in its overall topline to Rs 321.33 crore for the quarter ended June 2024. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 30.4 percent YoY to Rs 73.28 crore.

VST Industries stock was trading 20 percent higher at Rs 486.15 on the National Stock Exchange (NSE) in the previous session. The stock has gained 33 percent so far this year, outperforming Nifty's returns of 15 percent. In the past 12 months, the counter has risen around 30 percent. In comparison, Nifty rose 28 percent during this period.

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