Kitex Garments Limited, a Kerala-based garment manufacturer, announced today that its board of directors has approved the issue of bonus shares in a ratio of 2:1. Under the proposed bonus issue, shareholders will receive two new fully paid equity shares for each existing share held.
The shares of Kitex Garments Limited were trading at ₹642.55 down by ₹24.50 or 3.67 per cent on the NSE today at 1.55 pm.
The company will issue approximately 13.30 crore new equity shares with a face value of ₹1 each. The bonus shares will be issued from the company’s free reserves available as of March 31, 2024. Post-issue, the paid-up equity share capital will increase from ₹6.65 crore to ₹19.95 crore.
The implementation will require ₹13.30 crore, which will be appropriated from the company’s general reserve or retained earnings. As of March 31, 2024, Kitex Garments had a general reserve of ₹326.75 crore and retained earnings of ₹629.30 crore.
The bonus issue is subject to shareholders’ approval through postal ballot. The company plans to credit the bonus shares to eligible shareholders by January 20, 2025. The record date for determining eligible shareholders will be announced later.