Anand Rathi Wealth, a prominent name in wealth management services, is gearing up for a potential milestone by considering the issuance of bonus shares for the first time. The company’s Board of Directors will convene on Monday, January 13, 2025, to deliberate on this significant proposal.
In a filing to the stock exchanges, the company stated: “In furtherance to our intimation dated 1st January 2025, regarding the proposed Board Meeting scheduled to be held on Monday, i.e., 13th January, 2025, this is to inform you that the Board of Directors, in its meeting, inter-alia, would also consider a proposal for issuance of Bonus Shares to the shareholders of the Company.”
The company also clarified that the trading window, currently closed, will remain shut in light of developments related to the bonus share proposal.
On January 08, 2025, Anand Rathi Wealth share price ended 1.13% lower at ₹3,863.55, while the BSE benchmark Sensex closed down by 50.62 points to 78,148.49. Anand Rathi Wealth’s share price reached a 52-week high of ₹4,640.55 on December 09, 2024, and a 52-week low of ₹2,575.00 on January 16, 2024. As per BSE, the total traded volume for the stock stood at 4010 shares with a turnover of ₹1.54 crore.
At the current price, Anand Rathi Wealth shares are trading at a price-to-earnings (P/E) ratio of 61.40x, based on its trailing 12-month earnings per share (EPS) of ₹62.57, and a price-to-book (P/B) ratio of 27.26, according to exchange data.
As of September 31, 2024, Foreign Institutional Investors (FIIs) held a 5.32% stake in Zomato shares, while Domestic Institutional Investors (DIIs) owned 7.96%, and the promoters held a 47.99% stake.
The move to consider issuing bonus shares is supported by Anand Rathi Wealth’s robust financial growth in recent quarters. For the quarter ended September 30, 2024, the company reported:
The company has demonstrated a strong commitment to rewarding shareholders, as evidenced by the interim dividend of ₹7 per equity share (140% of the ₹5 face value) declared for FY25.
Bonus shares are a shareholder reward mechanism where additional shares are issued to existing shareholders at no extra cost. Bonus shares are distributed based on the number of shares held, which boosts stock liquidity while maintaining a cash-neutral position.
Unlike dividends, which involve cash payouts, bonus shares are issued by capitalising the company’s reserves. This method particularly appeals to investors seeking to expand their portfolios without incurring direct costs.
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 research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 9, 2025, 9:08 AM IST
Dev Sethia
Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.
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