Ruby Mills skids ~4% as board approves 1:1 bonus issue

11 Aug 2022 , 09:58 AM

Ruby Mills Limited informed that the board of directors of the company has considered and approved the issue of Bonus Equity Shares in the ratio of 1:1.

This implies that the shareholders will be issued 1 bonus share of Rs5 each for every 1 fully paid equity share held as on the Record date.

The company has fixed September 19, 2022, as the record date for such purposes.

The company plans to issue a total of 1,67,20,000 equity shares of Rs5 each, out of the Securities Premium available as of March 31, 2022.
In this regard, the company will utilize Rs8.36 crore from the Securities Premium Account.

The company further stated that “The allotted bonus shares will rank equally with existing shares and shall have the same rights, and shareholders will be entitled to participate in full in any dividend and other corporate action recommended and declared after the new equity shares are allotted.”

Company’s issued capital will increase to Rs16.72 crore post this bonus issue.

Post this development, Ruby Mills was trading at Rs465.75 down by Rs19.7 or 4.06% from its previous closing of Rs485.45 on the BSE. The scrip opened at Rs480.05 and touched intraday high and low of Rs490.75 and Rs465 respectively, so far.