3 For 1 Bonus: Retailer announces first free share issue, recommends no dividend
Published on 02/05/2025 03:14 PM
3 For 1 Bonus: Retailer announces first free share issue, recommends no dividendRecord date to determine the eligibility of shareholders for the bonus issue will be determined later, V-Mart Retail said in an exchange filing. This is the first instance in the company's history that it is issuing free shares to its shareholders.By Hormaz Fatakia May 2, 2025, 3:14:59 PM IST (Published)2 Min ReadV-Mart Retail Ltd. reported its March quarter results on Friday, May 2, along with which, it also announced a bonus issue of shares.
The company will be issuing three bonus shares to shareholders for every one share they hold as on the record date.
Record date to determine the eligibility of shareholders for the bonus issue will be determined later, V-Mart Retail said in an exchange filing. This is the first instance in the company's history that it is issuing free shares to its shareholders.
The board has not declared any dividend for the financial year 2025, aiming to retain profits and support future growth.
For the March quarter, V-Mart Retail returned to profitability, reporting a net profit of ₹18.5 crore, compared to a net loss of ₹39 crore.
Revenue for the quarter went up by 16.7% on a year-on-year basis to ₹780 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter went up by nearly 70% from last year to ₹68 crore.
EBITDA margin expanded by 270 basis points to 8.7%, from 6% on a year-on-year basis.
As a stock, V-Mart Retail has very strong institutional holdings. At the end of the March quarter, India's Mutual Funds had a 32.22% stake in the company. Funds from Bandhan MF, SBI MF, Kotak MF, Tata MF among others have stake in V-Mart Retail.
However, retail shareholding in V-Mart Retail is minimal, with shareholders with an authorised share capital of up to ₹2 lakh, having a 2.93% stake.
Among Foreign Portfolio Investors, Akash Prakash's Amansa Holdings also has a 7.9% stake in the company.
Shares of V-Mart Retail surged as much as 7% post the earnings announcement but has cooled off from the highs. The stock currently trades 4.5% higher at ₹3,412.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBonus sharesshare market todayV-MartV-Mart Retail