3:1 Bonus Shares: Know Date to Be Eligible for This Footwear Company’s Mega Bonus

In a significant corporate development, RedTape Limited, a well-known footwear brand, has declared a 3:1 bonus share issue. This means that for every one fully paid-up equity share, shareholders will receive three additional shares, enhancing their holding at no extra cost.

The decision, approved by the company’s Board of Directors, aims to reward existing shareholders and enhance stock liquidity in the market. This move comes alongside an increase in the company’s authorised share capital to accommodate the expanded equity base.

Key Details of the Bonus Issue

RedTape Limited has shared the specifics of its bonus share allotment, ensuring transparency and clarity for investors. Below are the crucial details:

Bonus Ratio: 3:1 (3 new shares for every existing share)
Face Value of Shares: ₹2 per share
Total Bonus Shares to be Issued: 41.46 crore shares
Pre-Bonus Paid-Up Equity Capital: ₹27.64 crore
Post-Bonus Paid-Up Equity Capital: ₹110.56 crore
Source of Bonus Issue: Free reserves from the profit and loss account
Record Date: February 4, 2025

Who is Eligible for the Bonus Shares?

To qualify for the bonus allotment, an investor must own shares of RedTape Limited on or before the record date, set as February 4, 2025. Shareholders whose names appear in the Register of Members or Register of Beneficial Owners maintained by depositories as of the record date will automatically receive the bonus shares.

What Happens After the Record Date?

Once allotted, the new bonus shares will rank pari passu with the existing fully paid-up equity shares. This means they will carry the same rights, including voting rights and dividend entitlements, as the existing shares.

Issuance in Dematerialised Form

RedTape has confirmed that the bonus shares will be issued in a dematerialised format. Investors holding shares in physical form and yet to provide their demat account details will have their shares temporarily held in a demat suspense account until the details are updated.

Expected Timeline for Credit of Bonus Shares

While the company has received shareholder approval for the bonus issue, the final allotment is subject to regulatory clearance. The company has stated that the exact date of crediting the bonus shares will be announced after receiving the necessary approvals from SEBI.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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