1:3 Bonus Shares: Record Date To Be Announced; Get 1 New Share Free For 3 Held?

In the Indian subcontinent, Rajoo Engineers Limited leads the market for thermoformers, sheet lines, and blown film lines. Rajoo Engineers Ltd is a producer and supplier of plastic extrusion equipment, specialising in single and multilayer blown film facilities. After the company announced bonus shares in a 1:3 ratio, Rajoo Engineers' shares wrapped up 2.03% down at Rs 383.35 per share on the BSE, giving it a market valuation of Rs 4,715.56 Cr on Tuesday.

Rajoo Engineers Bonus Shares

The Board of Directors "Considered, approved and recommended the issue of Bonus equity shares in the ratio of 1:3 i.e. 1 (One) New fully paid Equity Share for every 3 (Three) existing Equity Share held as on Record Date by the shareholder, subject to the approval of the shareholders of the Company through Postal Ballot," said Rajoo Engineers in a stock exchange filing on October-14, 2024.

"The equity shares of your Company are presently listed and actively traded on the BSE Limited. Over the years, the Company has performed satisfactorily well both in terms of profit and business. As on March 31, 2024 total free reserves and surplus of the Company is Rs. 11234.06 Lakhs including Security Premium Account of Rs. 1133.82 Lakhs. With a view to capitalize the Reserves and surplus and to rationalize the capital structure, and in appreciation of continuing support from shareholders of the Company, the Board of Directors at its meeting held on October 14, 2024, subject to the consent of the Members of the Company, approved and recommended for consideration of members, the bonus issue of equity shares of Re. 1/- (Rupee One) each credited as fully paid-up to eligible members of the Company in the proportion of 1 (One) new fully paid-up equity share of Re. 1/- (Rupee One) each for every 3 (Three) existing fully paid-up equity shares of Re. 1/- (Rupee One) each held by them as on the record date to be fixed by the Board, by capitalizing such sum standing credit to Reserves and Surplus of the Company as on March 31, 2024," the company further informed stock exchanges.

Following Member approval, the Board will declare the record date for the aforementioned bonus share issue.

4,10,03,049 equity shares would be issued as bonus shares and the bonus equity shares will be issued out of free reserves and the securities premium account of the company available as of March 31, 2024, according to Rajoo Engineers.

The pre-bonus paid-up equity share capital is Rs. 12,30,09,148/- consisting of 12,30,09,148 equity shares of Re. 1/- each while the post-bonus paid-up equity share capital is expected to be around Rs. 16,40,12,197/- consisting of 16,40,12,197 equity shares of Re. 1/-each, said Rajoo Engineers in a regulatory filing.

Rajoo Engineers Q2 Results

Rajoo Engineers' net profit increased 47.67% to Rs 7.93 crore in the quarter that ended in September 2024 compared to Rs 5.37 crore in the quarter that ended in September 2023. In the quarter that ended in September 2024, sales increased by 6.13% to Rs 56.81 crore, compared to Rs 53.53 crore in the quarter that ended in September 2023.

Rajoo Engineers Bonus Shares Allotment

"The Bonus Shares so allotted shall be subject to the terms and conditions contained in the Memorandum and Articles of Association of the Company and shall rank pari-passu in all respects with and carry the same rights as the existing Equity Shares on Record Date and shall be entitled to participate in full in any dividends and any other corporate action declared after the allotment of New Equity Shares. No letter of allotment shall be issued to the allottees, and in the case of Members who hold equity shares in dematerialized form, the bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the New Equity Shares shall be credited in compliance with the guidelines issued SEBI and relevant authorities, in this regard," said the company in a regulatory filing.

Rajoo Engineers Share Price Target

"Rajoo Engineers is sideways to bearish on the Daily charts with strong resistance at 444. A Daily close below support of 390 could lead to a target of 353 in the near term," recommended A R Ramachandran, Independent Research Analyst.

Disclaimer

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