RITES Ltd. (NSE: RITES, BSE: 541556) reported that, at the Board meeting held today, the Board of Directors have recommended issue of bonus shares to existing shareholders in the ratio of 1:4 (1 bonus share for every 4 shares held) subject to approval of the shareholders in the upcoming AGM.
Commenting on the bonus issue, Mr. Rajeev Mehrotra, Chairman and Managing Director, RITES Limited said, "Bonus issue is a part of the shareholder friendly policies that our company has consistently pursued and this will also help us align the equity capital in line with the reserve and surplus of the company."
The bonus issue is proposed after reserve and surplus of the company as on March 31st, 2019 touched Rs. 2,184 crore. RITES had reported 35.7% rise in revenue to Rs. 2240 crore and 37.3% rise in PAT to Rs. 490 crore in FY19 over FY18, with a strong order book of Rs. 6097 as on March 31st, 2019.
5 crore number of new ordinary shares of Rs. 10 each will be issued. These new shares will carry the same rights and will rank pari passu. The paid-up share capital of the company will increase from Rs. 200 crore to Rs. 250 crore after the bonus issue.
Shares of RITES Ltd was last trading in BSE at Rs.276.55 as compared to the previous close of Rs. 282.75. The total number of shares traded during the day was 78231 in over 1871 trades.
The stock hit an intraday high of Rs. 289.5 and intraday low of 274.95. The net turnover during the day was Rs. 22060505.