Shares of RedTape, a small-cap stock, jumped by over 5% on Thursday, December 26, hitting an intraday high of ₹915.
This rise followed the company’s announcement about a significant dividend payment and bonus share issuance during its board meeting.
Bonus Share Details
RedTape’s board has proposed issuing bonus shares to equity shareholders in a 3:1 ratio.
This means investors will receive three fully paid equity shares for every existing share they own.
According to the company’s filing, a total of 41,46,05,700 equity shares, each valued at ₹2, will be issued as bonus shares, pending approval from the company’s members.
The record date for the bonus share issue has not yet been announced.
In addition, the company declared an interim dividend of ₹2 per share. The record date to determine shareholders eligible for this dividend is January 3.
Stock Performance
RedTape’s stock gained 5.25% after the announcement, reaching an intraday high of ₹915 on the BSE.
The stock is now only 7% below its 52-week high of ₹981.80 and has more than doubled from its 52-week low of ₹454.75.
With a market capitalization of approximately ₹12,400 crore, RedTape is part of the BSE Smallcap Index.
The company, in a stock exchange filing, confirmed: “The board members have declared and approved an interim dividend of ₹2 (100%) per equity share for the financial year 2024-25.”
