Varun Beverages on Thursday announced that its Board, in its meeting held today, has recommended a bonus issue of equity shares in the ratio of two each held by the shareholders of the company, i.e. 1:2. Varun Beverages was trading nearly 3% higher on the stock 1,080 each on the BSE in afternoon deals.
“The Board of Directors has considered and approved bonus issue 1 (a) of equity shares in proportion to equity shares 10/- each for 2 (two) equity shares of Rs. 10/- by the shareholders of each company as on record date, subject to approval of the shareholders through postal ballot i.e. in compliance with applicable laws,” the company informed in an exchange filing.
Varun Beverages said the bonus shares will be issued from the securities premium account of the company available on December 31, 2021. The record date is yet to be announced. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
Varun Beverages net profit up 96% for the quarter ended March 2022 254 crores as compared to 129 crore year-on-year (YoY) while its revenue grew 26% during the said quarter 2,867.5 crore from 2,270 crore in the same quarter last year.