Redtape Announces ₹2 Interim Dividend and 3:1 Bonus Shares

Redtape Ltd has announced a series of significant developments including the declaration of an interim dividend, a proposed bonus issue, and an increase in the authorised share capital of the company.

Interim Dividend

The Board of Directors has approved an interim dividend of ₹2 (100%) per equity share of ₹2 each for the financial year 2024-25. Shareholders eligible for the dividend will be determined based on the record date set as January 3, 2024. This move reflects the company’s strong performance and ability to reward its shareholders.

Bonus Share Issue

The Board has also proposed a bonus issue of equity shares in the ratio of 3:1. This means shareholders will receive three fully paid-up equity shares of ₹2 each for every one existing equity share they hold.

• Pre-Bonus Issue Paid-up Capital: ₹27.64 crore, comprising 13.82 crore equity shares.
• Post-Bonus Issue Paid-up Capital: ₹110.56 crore, comprising 55.28 crore equity shares.

The bonus issue will be implemented using ₹82.92 crore from the company’s free reserves, which stood at ₹331.31 crore as of March 31, 2024.

Proposed Increase in Authorised Share Capital

Subject to shareholder approval, the Board has proposed to increase the authorised share capital of the company from the existing ₹30.02 crore to ₹112.01 crore. The new structure will comprise:

• Equity Shares: 56 crore shares of ₹2 each, increased from 15.005 crore shares.
• Preference Shares: 50,000 shares of ₹2 each, remaining unchanged.

This capital expansion involves the creation of 40.995 crore additional equity shares of ₹2 each, which will rank pari-passu with the existing equity shares. Consequently, the company has proposed amendments to Clause V (Capital Clause) of its Memorandum of Association to reflect these changes.

On December 27, 2024, Redtape share price opened at ₹899.70, up from its previous close of ₹887.25. At 9:44 AM, the share price of Redtape was trading at ₹898.35, up by 1.25% on the NSE.

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