Berger Paints board to consider bonus issue on August 9
Berger Paints will consider a proposal to issue bonus shares to investors on August 9, along with the first quarter financial results. «The Board may also consider a proposal for issue of bonus shares by capitalisation of reserves, subject to approval of the shareholders in the forthcoming meeting,» the company said in a filing on Tuesday. The company has not yet announced the record date for the same.
A company issues bonus shares to their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors. Bonus shares are fully paid additional shares issued by a company to its existing shareholders. When a firm issues bonus shares, its shareholders do not have to incur any extra costs to get them.
The number of bonus shares you receive depends on the number of shares of the firm you already hold. All shareholders who own shares of the firm before the record date, which is determined by the firm, are eligible for additional shares. The bonus shares once allotted will rank pari-passu in all respects and carry the same rights as the existing equity shares and will be entitled to participate in full in any dividend and other corporate actions recommended.
Berger Paints is the second-largest paint company in India having operations in Poland, Nepal and Russia, with a revenue of $1.3 billion approximately. In the decorative business, the company has nearly 40,000 retailers and is planning to add 8,000 retail touchpoints in FY24. Berger Paints is also a market leader in protective coatings business in India.
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