Anand Rathi Wealth Board Recommends Issuance Of 1:1 Bonus Shares
There will be 8.3 crore shares after the bonus issue, which will aggregate Rs 41.5 crore.
Anand Rathi Wealth Ltd.'s board of directors recommended on Monday the issuance of bonus shares by way of capitalisation of reserves, according to an exchange filing.
The bonus shares will be issued in the ratio of 1:1 new fully paid-up equity shares of Rs 5 each for every one existing fully paid-up equity share held by the eligible shareholders as on the record date.
There are 4.15 crore equity shares in total, pre-bonus issue, aggregating to Rs 20.8 crore. There will be 8.3 crore shares after the bonus issue, which will aggregate Rs 41.5 crore.
The issue will be subject to the approval of shareholders through postal ballot and any other applicable regulatory and statutory approvals.
The bonus equity shares will be issued out of free reserves or the securities premium account and/or the capital redemption reserve account of the firm available as at Dec. 31, 2024. Free reserves and/or share premium available for capitalisation are at the aggregate amount of Rs 615 crore as at Dec. 31, 2024.
The bonus shares will be credited to the respective demat account of the shareholders on or before March 11, 2025, which will be subject to completion of the required formalities and approvals as and when required.
Shares of Anand Rathi Wealth fell as much as 5.91% during the day to Rs 3,908.05 apiece on the National Stock Exchange. It closed 3.48% lower at Rs 4,009.90 per share, compared to a 1.47% decline in the benchmark Nifty. The share price had risen 49.21% in the last 12 months.
One out of the two analysts tracking the company has a 'buy' rating on the stock and another suggests a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 12.2%.
