Shares of Orient Technologies advanced as much as 14% after the company's shareholders approved the issue of bonus shares.
The shares are currently trading at around Rs 376.55.
The IT infrastructure service provide said shareholders have approved a bonus issue of equity shares in the ratio of one-for-10, a move the company said reflects its capital position and ongoing focus on long-term value creation, according to its notification to the exchanges.
The approval came through a postal ballot process with shareholder participation, according to the company. The bonus issue will be carried out by capitalising Rs 4.16 crore from the securities premium account, it said.
The company said the bonus issue is intended to increase equity liquidity and broaden shareholder participation.
Bonus Shares Record Date
While the company added that the bonus shares will rank pari passu with existing fully paid-up equity shares and will be credited in dematerialised form to eligible shareholders, It said the record date to determine eligibility will be announced later. The company has received in-principle approval from stock exchanges for the issue.
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