Cigarette-maker Godfrey Phillips India Ltd.'s board will consider its first-ever bonus issue of shares along with the first quarter financial results on Aug. 4.
The proposed free bonus issue is in the ratio of 2:1, which means two new fully paid-up equity shares of Rs 2 each will be given for every one existing fully paid-up equity share held, according to a stock exchange filing on Monday.
Details regarding the ex and record date will be announced after the board approves the plan. The bonus share issue will also require shareholders' approval.
A bonus issue is the distribution of free shares to eligible shareholders. The share price adjusts in the ratio of the bonus allotment at the ex-date. However, this does not affect the overall value of holdings.
The board will also consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30.
Last year, Godfrey Phillips India gave an interim dividend of Rs 35 per share and a final dividend of Rs 56.
Other than dividends, the company last carried out a stock split from Rs 10 to Rs 2 in 2014.
Godfrey Phillips Share Price Movement
Shares of Godfrey Phillips India rose as much as 3.1% to Rs 8,963 apiece on Tuesday. The benchmark Nifty 50 was flat.
The total traded volume so far in the day stood at two times its 30-day average. The relative strength index was at 64.
The stock has risen 107% in the last 12 months and 69% on a year-to-date basis.
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