Jindal Worldwide Shares Rose Over 4% After Announcing 4:1 Bonus Issue

Jindal Worldwide shares rose over 4% on January 8, 2024, reaching the day high of ₹468.80 at 09:45 AM. The increase in Jindal Worldwide shares came after the company announced that its Board of Directors had approved a bonus issue in a 4:1 ratio.

Jindal Worldwide Bonus Issue Details

The 4:1 bonus issue means that for every existing fully paid-up equity share of ₹1 each held by eligible shareholders, 4 new fully paid-up equity shares of ₹1 each will be issued.

The bonus shares will be issued from the company’s free reserves and/or securities premium account, as of March 31, 2024. This decision, approved by the Board of Directors, is subject to shareholder approval through a postal ballot.

The bonus shares are expected to be credited or dispatched to shareholders by March 6, 2025, within two months of the Board’s approval.

Increase in Authorised Share Capital

In addition to the bonus issue, the company plans to increase its authorised share capital and make a corresponding alteration to the capital clause of its memorandum of association. After the bonus issue, Jindal Worldwide’s paid-up share capital will rise to ₹100.26 crore, with 100,26,02,000 fully paid-up equity shares. The current paid-up capital stands at ₹20.05 crore, comprising 20,05,20,400 shares.

Jindal Worldwide Q2 FY25 Performance

Jindal Worldwide Ltd is involved in the manufacturing of Denim fabric, premium shirtings, yarn dyeing, bottom weights and home textiles through its various internal divisions. During Q2 FY25, the company’s revenue from operations increased by 45.70% YoY due to normalised business operations and increased demand for Finished Fabric in domestic and export markets. In addition, EBITDA rose 38.30% YoY showing a major improvement in operational profitability.

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