Kitex Garments Ltd, a leading manufacturer of infant and children’s clothing, has announced a 2:1 bonus issue. Approved on November 22, 2024, this corporate action entitles shareholders to two new equity shares for every one share they hold. The record date for the bonus issue is January 17, 2025.
Bonus Issue Details
- Bonus Ratio: 2:1 (two additional shares for every one held).
- Objective: Reward shareholders and improve market liquidity.
- Capital Allocation: Kitex will use ₹13.30 crore from its reserves to fund the bonus issue.
- Impact on Equity Capital: The paid-up equity capital will rise from ₹6.65 crore to ₹19.95 crore.
Eligible shareholders will receive their bonus shares within two months of the board’s approval, no later than January 20, 2025. Trading of the new shares is expected to begin on January 21, 2025.
About Kitex Garments
Kitex Garments, part of the Anna-Kitex Group, has a strong global presence in the infant and children’s apparel market. Recently, the company expanded its operations to the United States, further strengthening its international footprint.
The company’s product range includes:
- Traditional Indian garments.
- Undergarments.
- High-quality children’s clothing under the “Kitex” brand.
Financial Performance
Kitex Garments has delivered impressive growth:
- Q2 FY25 Revenue: ₹215.88 crore, up 61.16% year-on-year from ₹133.96 crore in Q2 FY24.
- Q2 FY25 Net Profit: ₹37.34 crore, a 181.37% increase from ₹13.27 crore in Q2 FY24.
- EBITDA: ₹57.95 crore, a 126.81% rise from ₹25.55 crore in Q2 FY24.
This strong financial performance showcases Kitex’s ability to deliver consistent returns to its investors.
Strategic Implication
This bonus issue is Kitex’s first in seven years, following a 2:5 bonus issued in 2017. By rewarding shareholders and increasing stock accessibility for retail investors, Kitex aims to enhance market liquidity.
With its consistent financial growth and expanding global presence, Kitex demonstrates a commitment to increasing shareholder value and driving long-term growth.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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