Godfrey Phillips shares adjust to 2:1 bonus issue: What it means for shareholders?
The shares of Godfrey Phillips appeared to have crashed around 66 percent in one single session on September 16, as the stock price adjusted to a 2:1 bonus issue of shares
The shares of Godfrey Phillips appeared to have crashed around 66 percent in one single session on September 16, as the stock price adjusted to a 2:1 bonus issue of shares. The stock in reality jumped more than 9 percent after turning ex-bonus.
2/8
Godfrey Phillips on August 4 announced its first-ever bonus issue of equity share. Every shareholder owning 1 share of the company as on the record date, will receive two bonus shares following the issuance of the additional shares.
3/8
A company announces bonus issue of shares to reward its existing shareholders with an investment opportunity, which is perceived to be attractive. While the issue of bonus shares increases the total number of shares issued and owned, it does not change the market capitalization of the company. This increases the overall liquidity of the stock, and makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock. (Representative image)
4/8
The issuance of bonus shares will likely increase investors' confidence for the stock, as it reflects on the firm's strong financials and growth potential. Bonus issue essentially are free shares offered by a company from its reserves. Investors must own shares of the company as on the record date to be eligible for the bonus issue. (Representative image)
Godfrey Phillips said that it will use nearly Rs 20.8 crore from its general reserves and/or retained earnings for implementing the bonus issue. Following the bonus issue, the paid up share capital of the company will stand at Rs 31.2 crore, divided into nearly 16 crore shares. Currently, prior to the bonus issue, its paid up share capital stands at Rs 10.4 crore, divided into 5.2 crore shares.
6/8
Godfrey Phillips had set September 16 as the record date to determine the eligibility of the shareholders set to receive the bonus shares. Investors must own the shares of the company as on the record date in order to be eligible to receive the bonus shares.
7/8
After the issuance of bonus shares, the company's market capitalization stands at around Rs 57,401 crore and the stock's P/E ratio nears 161. The stock jumped more than 9 percent to hit an intraday high of Rs 3,720 apiece.
8/8
The tobacco manufacturer on August 4 reported a 64 percent on-year jump in net profit to Rs 365 crore for the April-June quarter of FY26. It had reported a net profit of Rs 223 crore in the year-ago period. The firm's revenue meanwhile rose 34 percent on-year to Rs 1,807 crore in Q1FY26, as against Rs 1,352 crore a year ago.
