Ice-Cream Maker Sheetal Cool Products Announces Bonus Shares and Stock Split After Strong Market Gains

Sheetal Cool Products Limited has announced plans to issue bonus shares and split its stock for investors. The board of directors recommended a bonus issue in the ratio of five to one. This means eligible investors will receive five new fully paid-up equity shares with a face value of five rupees for every single stock they hold.

Stock Split Details

The board also approved a stock split in the ratio of one to two. Under this plan, every existing company stock with a face value of ten rupees will be split into two stocks with a face value of five rupees each. This change requires an alteration of the capital clause in the Memorandum of Association.

Approvals and Market Performance

The stock split and bonus issue remain subject to approval from members and other required statutory or regulatory bodies. The board has not yet announced the record dates for these corporate actions, and investors must hold the stock before that date to qualify. On Friday, the company share price closed one point eleven percent higher at six hundred seventy-five rupees per share on the BSE. The firm holds a market capitalisation of seven hundred eight point seventy-five crore rupees, with a return of one hundred eighty-two percent over the past one year.

Context

Bonus issues and stock splits are common corporate actions used by companies to increase liquidity and make shares more affordable for retail buyers. Companies typically undertake such moves following strong financial performance and share price growth over preceding months.