Godfrey Phillips announces 2-for-1 bonus issue
The 2-for-1 bonus issue means that each shareholder holding 1 share of the company as on the record date will receive two new fully paid-up shares following the issuance, according to the exchange filing on Monday.
The cigarette maker is a known manufacturer and distributor of tobacco items such as Marlboro, Stellar and Focus, among several others.
Godfrey Phillips has set the record date for the bonus issue as 16 September. 2025 to determine the eligibility of the shareholders for receiving the bonus shares.
Investors must own at least 1 share of the company as on the record date in order to be eligible to receive the bonus shares.
The bonus issue is subject to approval from the board members and other regulatory approvals. Once the issuance is approved, the bonus will be credited in the shareholder's holdings on or before 3 October 2025.
Godfrey Phillips said in the filing that it will fund the bonus issue by using nearly ₹ 20.8 crore from its general reserves and/or retained earnings.
While a bonus issue increases the total number of shares issued and owned in the market, it does not change the market capitalization of the company.
A company issues bonus shares to boost investments by rewarding its existing shareholders. This increases the overall liquidity of the stock, making it more attractive for retail investors to add it to their portfolio.
It's also a way to provide an alternative to a cash dividend or reflect a position of financial health.
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