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Blue Star Ltd is planning to issue its first-ever bonus shares and it is one of the agenda items at the board meeting scheduled for Thursday this week.
The company has never issued bonus shares before though it has been a consistent dividend payer and has an unbroken record since 2006.
The company has ample reserves to issue bonus shares as well as pay out dividends.
As on March 31, 2022, the company had total reserves of ₹998.3 crore. Of these, there are two components from which the company can issue bonus shares - securities premium account and general reserves.
Its reserves in the securities premium account at the end of 2021-22 were ₹210.15 crore and in the general reserve ₹152.2 crore. General reserve is created out of the profits earned by transfer of surplus in the statement of profit and loss.
Its stock has outperformed the Nifty500, of which it is a constituent, across most time periods. In the last 180 days, the Blue Star stock appreciated by over a fifth while the Nifty500 fell. Over the last ten years, the stock has appreciated nine times while the Nifty500 has appreciated just over three times.
Last Friday the stock ended up nearly 1 percent higher at ₹1,480.20 on the NSE.
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