Textile stock jumps after announcing 1.5:1 bonus issueTextile stock jumps after announcing 1.5:1 bonus issue

Introduction:

Textile stock announced a 1.5:1 bonus issue on April 16, 2025, offering three shares for every two held. Bonus shares will be credited within two months, pending shareholder approval via postal ballot, as per SEBI LODR compliance.

Share Price movement of VTM:

On April 17, 2025, VTM Ltd opened at ₹207.15, reaching a high of ₹207.15, up 1.99% from the previous close of ₹203.10 and a low of ₹207.15. The stock is currently trading at ₹207.15, with a market cap of ₹833.31 Crores.

VTM announced 1.5:1 bonus issue:

VTM Ltd has announced a 1.5:1 bonus issue, meaning shareholders will receive 3 fully paid-up shares for every 2 held, subject to shareholder approval via postal ballot. The bonus will be issued from free reserves as per the audited balance sheet dated March 31, 2024.

The company’s pre-bonus paid-up capital stands at ₹14.02 Crores (1,40,22,760 shares), which will increase to ₹100.57 Crores (10,05,69,000 shares) post-bonus. The total reserve available for the issue is ₹1,180.77 Crores, and the estimated outflow will be ₹16.04 Crores.

The bonus shares will be credited within two months of board approval, dated April 16, 2025. Further details regarding the record date and postal ballot process will be announced soon as part of regulatory compliance under SEBI LODR norms.

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Ace investor holding of VTM:

Ace investor Nikhil Jaisingh Merchant holds 792,021 shares in VTM Ltd, valued at ₹16.4 Crores. His stake was 1.97% in December 2024, with updated filings awaited. This substantial investment reflects strong conviction in VTM’s growth and long-term potential in the textile sector.

Stock performance of VTM for Period of 1 week, 6 months and 1 year:

VTM stock delivered a weekly gain of 6.09%, continuing its strong momentum. Over the last six months, it surged by 175%, and on a yearly basis, it recorded a remarkable return of 184%, reflecting robust investor confidence and consistent upward performance.

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Shareholding pattern of VTM:

Summary	Dec-24	Sep-24	Jun-24
Promoter	75%	75%	75%
FII	0%	0%	0%
DII	0%	0%	0%
Public	25.00%	25%	25.00%

About VTM:

VTM Limited (NSE: VTMLTD) is a leading textile company engaged in manufacturing high-quality cotton fabrics and yarns. Known for its strong legacy and consistent performance, it caters to both domestic and international markets, with a focus on innovation, quality, and sustainable production practices.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.