Varun Beverages climbs ~3% as board nods 1:2 bonus issue

28 Apr 2022 , 03:39 PM

Varun Beverages Limited’s counter jumped as much as 6% so far in today’s trade and was last trading 2.66% higher at Rs1,064 on National Stock Exchange.

This surge is followed by the leading beverage player’s announcement of a bonus issue. The investors cheered as VBL announced a bonus issue in the ratio of 1:2, i.e., one equity share will be issued for every two equity shares of the face value of Rs10 each held in the company.

This issue is subject to approval from shareholders through Postal Ballot i.e., in compliance with the applicable laws.

The company will issue bonus shares worth Rs216.52 crore divided into 21,65,16,540 Equity Shares of Rs10 each. Bonus shares will be issued out of the securities premium account of the Company available as of December 31, 2021.

Post-bonus capital will be Rs649.54 crore divided into 64,95,49,620 equity shares of Rs10 each.

So far in the day, its scrip swirled between the band of Rs1,102 to Rs1,050 on the exchange.