Kothari Products Ltd. (KPL), a diversified small-cap company engaged in international trade, real estate development, and investments, has announced a 1:1 bonus issue, offering shareholders one additional fully paid-up equity share for every existing share held.
Key Details of the Stock Split
- Bonus Ratio: 1:1 (One bonus share for every one existing share).
- Record Date: February 18, 2025 – Shareholders holding shares as of this date will be eligible for the bonus issue.
- Allotment Date: The newly issued shares will be credited to shareholders’ demat accounts on February 19, 2025.
In its stock exchange filing, Kothari Products stated:
“The Board of Directors has approved the issuance of bonus shares in the ratio of 1:1, subject to shareholder approval through postal ballot.”
Financial Performance
Kothari Products Ltd. has shown consistent growth across key financial indicators:
- Q3 FY25 Results Date: February 14, 2025 – The company will announce its unaudited Standalone and Consolidated Financial Results for Q3 and the nine months ending December 31, 2024.
- Recent Profitability: The company has maintained strong financial performance, with steady earnings growth supporting its bonus issuance decision.
- Trading Window Closure: Due to insider trading regulations, the trading window has been closed since January 1, 2025, and will reopen 48 hours after results are declared.
Company Overview: Kothari Products Ltd.
Founded in 1983, Kothari Products Ltd is a diversified enterprise operating in international trade, real estate development, and investments.
Core Business Segments:
- International Trading:
- Involves import/export of coal, agro products, edible oil, metals, steel, PVC, transformers, and storage devices.
- Real Estate & Investments:
- Engaged in property development, leasing, and investment management.
The company has a market capitalization of ₹600 crore, positioning it as a key player in the small-cap segment.
Kothari Products’ Bonus Issue History
This marks Kothari Products’ third bonus issue in its history:
- March 2014: 2:1 Bonus Issue (Two bonus shares for every existing share).
- 2016: 1:2 Bonus Issue (One bonus share for every two existing shares).
- 2025: 1:1 Bonus Issue (One bonus share for every existing share).
This latest move highlights the company’s commitment to rewarding shareholders and enhancing liquidity.
Kothari Products Ltd.’s 1:1 bonus issue reflects strong financial performance and a commitment to shareholder wealth creation. With the record date set for February 18, 2025, investors are closely watching the company’s Q3 results and future business developments.
Given the company’s strong business fundamentals, this bonus issue further reinforces its position as a stable and growing enterprise.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice.
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