Kitex Garments said that its board has approved a proposal to issue bonus equity shares in the ratio of 2:1 i.e. two new fully paid equity shares of Re 1 each for every one existing equity share of Re 1 each held as on record date by the shareholder.
The bonus share issue proposal is subject to the approval of shareholders of Kitex Garments.
The company will inform the "record date" for determining eligible shareholders entitled for issuance of bonus shares, in due course.
The pre-bonus paid-up equity share capital as on date is Rs 6.65 crore consisting of 6.65 crore equity shares of Re 1 each.
The company would appropriate a sum of Rs 13.30 crore from the general reserve or retained earnings for issuance of bonus shares. Accordingly, the post-bonus paid-up equity share capital is expected to be around Rs 19.95 crore consisting of 19.95 crore equity shares of Re 1 each.
The bonus shares would be credited within 2 months from the date of board approval, i.e., on or before 20 January 2025.
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Kitex Garments is engaged in the manufacture of fabric and readymade garments. The company operates through two business segments: garments and fabric. The firm also exports cotton garments principally infants wear.
The company had reported 181.39% jump in consolidated net profit to Rs 37.34 crore on a 61.15% increase in sales to Rs 215.88 crore in Q2 FY25 as compared with Q2 FY24.
The scrip tumbled 4.33% to currently trade at Rs 640.05 on the BSE.
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