Shares of smallcap company RedTape Limited experienced a significant rise on Tuesday, jumping over 10% on the Bombay Stock Exchange (BSE) to reach Rs 199.85.
This surge coincided with the record date for the company’s bonus shares.
RedTape has issued bonus shares in a 3:1 ratio, providing investors with 3 bonus shares for every 1 share they hold. Notably, this is the company’s first-ever bonus share issuance.
Interim Dividend and Financial Growth
Apart from the bonus shares, RedTape declared an interim dividend of Rs 2 per share, with the record date for the dividend set as January 3, 2025.
Over the past year, the company’s shares have gained 15%, pushing its market capitalization beyond Rs 10,800 crore.
Company History and Financial Performance
RedTape became publicly listed in August 2023 following its demerger from Mirza International.
During the demerger announcement in November 2021, RedTape accounted for 55% of Mirza International’s total sales.
The demerger received approval from the National Company Law Tribunal (NCLT) in February 2023.
Currently, the Mirza family holds a 71% stake in the company, with public shareholders owning 28.20%.
In terms of financial performance, RedTape reported a revenue of Rs 415.78 crore and a profit of Rs 25.68 crore in the September 2024 quarter.
In the preceding June 2024 quarter, revenue stood at Rs 440.61 crore, with a profit of Rs 30.51 crore.
