Godfrey Phillips Share Price Update: Bonus Issue’s Last Chance for Investors
In the stock market world, such news often comes which directly impacts investors’ earnings and portfolios. Today, such an important update has come which can be a golden opportunity for investors. This news is around Godfrey Phillips share price and its bonus issue, in which the company is going to distribute free shares to its shareholders. In this article, we will explain in simple and emotional language what is the meaning of bonus issue, who will be eligible and how it will affect Godfrey Phillips shares.
Big news of Godfrey Phillips Share Price and Bonus Issue
Godfrey Phillips India Ltd. has brought an attractive gift for its investors. The company has announced that it will give two free bonus equity shares in exchange for every fully paid-up equity share. The face value of each bonus share has been kept at Rs 2. Meaning if you have one Godfrey Phillips share then you will get two free bonus shares.
This bonus issue is so big that a total of 10,39,87,840 bonus equity shares will be distributed. This step will adjust the Godfrey Phillips share price in the short-term, but can be a profitable deal for investors in the long-term.
Last Date To Buy Godfrey Phillips Share Before Record Date
Investors must understand that the record date has been fixed as Tuesday, 16 September. Only those investors will be eligible who will have Godfrey Phillips shares in their demat account till this record date. If you buy on this day, those shares will not reflect on time due to T+1 settlement cycle. Therefore, if you want to take advantage of the bonus issue, you will have to buy shares one day in advance.
Monday will be a crucial day for investors as this is the last session in which you can buy Godfrey Phillips shares and keep them in your demat account and qualify for the bonus issue.
When will the bonus shares be available and when will trading start?
Godfrey Phillips India has clarified that the bonus shares will be allocated within 15 business days after the record date. Shareholders will get notification through the depository firm when the shares are credited. Bonus shares will be open for trading from the next session, meaning investors will start seeing their holding instantly.
Effect of Bonus Issue on Godfrey Phillips Share Price
Often investors are confused about what will be the effect of the bonus issue. In simple words, a bonus issue means distribution of free shares. Its direct effect is that the Godfrey Phillips share price gets adjusted on the ex-date according to the bonus ratio. But this will not have any negative impact on the overall holding value of the investor. The combined value of the total shares you hold will remain the same.
After this bonus issue, the issued, subscribed and paid-up capital of Godfrey Phillips India will jump from Rs 10.4 crore to Rs 31.2 crore. This clearly shows that the company is committed to balancing its growth strategy and shareholder value.
Godfrey Phillips Shareholding Pattern And Market Position
Godfrey Phillips India has a strong market presence. As per BSE shareholding data till June, foreign institutions hold a 3.85% stake in the company, while nearly 60,000 retail investors with shareholding up to Rs 2 lakh have a combined stake of 9.76%.
The company’s base is also strong as it is India’s second-largest cigarette maker after ITC Ltd. It markets multiple popular brands such as Four Square, Red & White, Cavanders, Stellar, Focus and Originals under International. The biggest thing is that Godfrey Phillips also manufactures and distributes globally famous Marlboro cigarettes in India in partnership with Philip Morris.
Is Long-Term Growth Possible in Godfrey Phillips Share Price?
If long-term investors are considered, the bonus issue creates a positive sentiment in the market. Such corporate actions increase trust in the company and investor confidence. Although, in the short-term Godfrey Phillips share price will adjust, but in the long-term, there is every possibility of benefiting from demand, growth and strong brand positioning of the company.
This is a perfect time for investors to formulate a strategy for their portfolio. After the bonus issue, liquidity will also improve and the stock will become more accessible for retail investors.
Disclaimer:
This article is for informational purposes only. The details given here are based on market updates and are not financial advice of any kind. Consult your financial advisor before making any investment.
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