Shares of Bosch Ltd. fell as much as 3% on Friday, November 6, after the company announced its September quarter results, along with which, it also announced a bonus issue of shares and a stock split.
The board of Bosch has approved a bonus issue in the ratio of 3:1, which means that shareholders will be eligible to receive three bonus shares for every one share that they own as on the record date, which is yet to be disclosed.
This is the first instance in the company’s history that it has announced a bonus issue for shareholders.
Along with the 3:1 bonus, the board of Bosch has also approved a stock split in the ratio of 1:5, which means one share carrying a face value of ₹10 will be split into five shares of face value of ₹2.
This is the first instance in over two decades that Bosch has announced a stock split. Back in 2004, the company had divided one share with a face value of ₹100 into 10 shares with a face value of ₹10 each.
Record date for both the bonus issue and the stock split is yet to be disclosed as both the proposals will be subject to shareholder approval.
Bosch also declared its September quarter results, which showed a 28.2% growth in its revenue to ₹7,655 crore from ₹5,969 crore earlier, while its net profit stood at ₹839.4 crore from ₹708 crore last year. The company’s bottomline was also aided by a one-time gain of ₹130 crore.
Earnings Before Interest, Tax, Depreciation and Amortistion (EBITDA) for the quarter stood at ₹1,037 crore from ₹842 crore in the same quarter last year. EBITDA margin remained steady at 13.5% from 14% last year.
Shares of Bosch are trading 2.5% lower after the results announcement at ₹51.150. The stock is up 42% so far this year.
Bonus, Stock Split Alert: Bosch to reward shareholders by issuing free shares, dividing stock; Details here