Redtape, the small-cap stock, made a significant announcement on Thursday, December 26, revealing that its board has approved a bonus share issue and an interim dividend payout.
The company’s board proposed to issue bonus shares in the ratio of 3:1, meaning shareholders will receive three new fully paid-up equity shares of ₹2 each for every existing share they hold. A total of 41,46,05,700 equity shares will be issued as bonus shares, pending approval from the company’s members. The record date for this bonus issue has yet to be announced.
In addition to the bonus shares, Redtape declared an interim dividend of ₹2 per equity share for the financial year 2024-25. The record date for the dividend is set for January 3, allowing eligible shareholders to receive the payout.
Stock Market Reaction: Following the announcements, Redtape’s stock saw a notable surge. The share price jumped 5.25%, reaching a day’s high of ₹915 on the BSE, up from its opening price of ₹879. The stock has been performing well, trading just 7% below its 52-week high of ₹981.80 and more than doubling from its 52-week low of ₹454.75.
Redtape is part of the BSE Smallcap Index and has a market capitalization of nearly ₹12,400 crore.
This corporate action is expected to boost investor sentiment and could potentially drive further growth for the stock.
