Shares of GTV Engineering slipped over 6% in Thursday's trade after the company's board approved the allotment of bonus equity shares in a 2:1 ratio.
The stock traded 5.58% lower at Rs 21.32 on the BSE at around 12:09 p.m. on Oct. 8, compared to its previous close at Rs 22.58.
Investors are tracking the impact of the bonus share allotment, along with the increase in GTV Engineering's total outstanding equity shares and paid-up share capital.
Board Approves 2:1 Bonus Share Allotment
In an exchange filing dated Oct. 8, GTV Engineering intimated that its board has approved the allotment of 10,16,00,732 fully paid-up equity shares of Rs 2 each as bonus shares.
The allotment has been made to shareholders whose names appeared in the company's Register of Members as of Oct. 7, which was the record date fixed for the bonus issue.
The bonus shares have been issued in a 2:1 ratio, meaning shareholders will receive two bonus equity shares of Rs 2 each for every one equity share of Rs 2 held in the company.
Paid-Up Capital Rises After Bonus Issue
Following the allotment, GTV Engineering's paid-up equity share capital has increased from Rs 10.16 crore, comprising 5,08,00,366 equity shares of Rs 2 each, to Rs 30.48 crore.
The total number of equity shares has consequently risen to 15,24,01,098 shares of Rs 2 each.
The company also stated that the bonus equity shares will rank equal to its existing equity shares and carry the same rights in all respects.
GTV Engineering Share Price Performance
The stock has been in focus over the past week, as it has shed more than 68.9% during the period.
The stock has a price-to-earnings multiple of 6.25 times and currently has a market cap of Rs 327.6 crore.
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