Phoenix Mills in Focus Ahead of Board Meeting: Bonus Shares on the Horizon

Shares of Phoenix Mills Ltd., a leading mall operator, are set to be in the spotlight on Wednesday as the company’s board meets to discuss its June quarter results and a proposed bonus issue of shares. This marks a significant event, as it will be the first instance in nearly two decades that Phoenix Mills is issuing free shares to its shareholders.

Historical Context of Bonus Issues

The last time Phoenix Mills issued bonus shares was in December 2005, where shareholders received four free shares for every one share they held as of the record date. This upcoming bonus issue is therefore a notable event for the company and its investors.

Dividend Payments and Share Value

Apart from the bonus issues, Phoenix Mills has consistently paid dividends to its shareholders annually. The dividend amounts have varied, with the most recent being Rs 5 per share last year. The current face value of Phoenix Mills shares is Rs 2 per share.

Impressive Retail Performance

According to the company’s quarterly update at the beginning of July, retailer sales during the April-June period surged by 25% from the previous year, reaching Rs 3,214 crore. This growth was driven by strong double-digit increases in sales at Phoenix MarketCity in Mumbai and Phoenix Palassio, as well as the ramp-up of newly launched malls.

Gross retail collection for the quarter was Rs 794 crore, marking a 28% increase from the previous year. The weighted average trading occupancy across major malls was 90% for the quarter, with occupancy in currently operational assets improving to 71% in June 2024, up from 70% in March.

Hospitality Segment Performance

The St. Regis in Mumbai, one of Phoenix Mills’ prominent properties, reported an occupancy rate of 85% with an average room rate of ₹16,425, showcasing robust performance in its hospitality segment.

Shareholding Pattern

Phoenix Mills is closely held, with promoters holding over 47% of the stake as of the June quarter. Indian Mutual Funds have a 12.3% stake, while Foreign Portfolio Investors hold 35.4%, including notable entities such as the Government of Singapore, Nomura India Investment Fund, and Baillie Gifford Pacific Fund. Retail shareholders, those with authorized share capital of less than Rs 2 lakh, hold just over 2% of the stake, numbering fewer than 70,000.

Stock Performance

Currently, shares of Phoenix Mills are trading down by 1.86% at Rs 3,630. However, the stock has experienced significant growth, more than doubling in value over the last 12 months with a gain of over 100%. For 2024, the stock has surged by 62%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.