Kitex Garments Announces 2:1 Bonus Share Issue

Kitex Garments Limited has announced a 2:1 bonus share issue, rewarding shareholders with two new equity shares for every one share they currently hold. The decision was disclosed in a regulatory filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Key Details of the Bonus Issue

• Bonus Ratio: Shareholders will receive 2 bonus equity shares for every 1 share held.
• Face Value: Both existing and bonus shares will carry a face value of ₹1 each.
• Total Shares to Be Issued: The company will issue 13.3 crore bonus shares, raising its paid-up share capital from ₹6.65 crore to ₹19.95 crore.
• Source of Funds: The bonus shares will be funded from free reserves of ₹326.75 crore and retained earnings of ₹629.30 crore as of March 31, 2024.

Timeline and Approval

The bonus shares are expected to be credited or dispatched by January 20, 2025, within two months of Board approval. Shareholder consent is required, which will be sought via a Postal Ballot.

The Record Date to determine eligible shareholders will be announced soon.

Financial Position

Kitex Garments has emphasized its strong financial health, with audited reserves confirming sufficient funds to support the bonus issue.

Regulatory Compliance

The announcement complies with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, ensuring transparency and adherence to legal norms.

This move underscores Kitex Garments’ commitment to rewarding its shareholders and reflects its robust financial position.