IndiaMART InterMESH has announced that its Board will consider a proposal for a bonus issue of equity shares to investors on April 28.
“The Board of Directors of the company will also consider the proposal for issue of Bonus Shares, subject to the approval of shareholders of the company, in the aforesaid Board Meeting,” the company said in a filing.
A company issues bonus shares to shareholders to increase the stock’s liquidity and reduce the price to make it more affordable to investors.
Bonus shares are additional shares that are fully paid that the company issues to its existing shareholders. The shareholders of a company do not have to pay any additional fees to get bonus shares when the company issues them. Your existing stock holdings in the company determine how many bonus shares you will receive.
Every shareholder who owned company shares before the ex-date, determined by the company, is eligible for the additional shares.
On April 28, the company will also announce its fourth quarter results and, if the board so recommends, consider paying a dividend. This is in addition to the bonus issue.
The company’s shares increased 1.93% on Tuesday to close at Rs 5,305 per share on the NSE. The shares have increased by around 22% so far this year.
The company recorded third-quarter revenue of Rs 251 crore, higher by 33%, and consolidated net profit of Rs 113 crore, increased about 61% during the same period.
IndiaMART InterMESH has an average target price of Rs 5475.67, an upside of 2.96% from the current levels, according to Trendlyne data.
IndiaMart is one of India’s significant online B2B marketplaces, connecting buyers with suppliers. The channel focuses on giving a platform to small and medium-sized organizations (SMEs), big enterprises, and individuals. It has a 60% market share of the online B2B classified space in India.