The board of directors of Godfrey Phillips India Ltd. will meet on Sept. 20 to consider and recommend to the shareholders for their approval and issue of bonus shares for every share held, according to an exchange filing on Friday.
The bonus issue will be in the ratio of 2:1. Two new fully paid-up equity shares of Rs 2 each for every one existing fully paid-up equity share of Rs 2 each, to the equity shareholders of the company by capitalisation of reserves, the filing said.
Earlier in July, the cigarette maker announced that it will proceed with its plan to exit the retail business under the '24Seven' brand, following the lifting of an interim injunction by a district court in the capital.
Shares of Godfrey Phillips were trading 9.37% higher at Rs 7,012.95 apiece at 3:20 p.m., compared to a 1.07% decline in the benchmark Nifty.
The share price has risen 235.28% on a year-to-date basis and 233.84% in the last 12 months. The relative strength index was at 77.43, indicating that the stock was overbought.
An analyst tracking the company has a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 32.9%.
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