The board of IndiaMART recommended issue of bonus shares to the equity shareholders in the ratio of 1:1
The company has set June 12, 2023 as the record date for determining the list of shareholders who will be allotted bonus equity shares
IndiaMART reported a consolidated net profit of INR INR 283.8 Cr in FY23, down nearly 5% YoY, while total income surged 34% to INR 1,165.9 Cr
Even as its net profit declined 5% year-on-year (YoY) in the financial year 2022-23 (FY23), the board of B2B marketplace IndiaMART InterMESH on Friday (April 28) recommended issuance of bonus shares in the ratio of 1:1.
The company has set June 12, 2023 as the record date for determining the list of shareholders who will be allotted bonus equity shares.
“The board recommended issue of bonus shares to the equity shareholders of the company in the proportion of 1 (one) equity share of INR 10 each fully paid up for every 1 existing equity share of INR 10 each fully paid up held as on the record date, subject to the approval of the shareholders in the ensuing AGM,” the company said in an exchange filing.
Bonus shares are additional shares issued by a company to its shareholders in proportion to the shares held by them. The issuance of such shares helps bring down the prices of shares, thereby improving participation of retail investors.
The development comes a couple of days after the B2B marketplace said that its board of directors will mull a proposal for bonus share issue.
Among other things, the company’s board also recommended a dividend of INR 20 per equity share for FY23 during its meeting today.
“Recommended a final dividend of INR 20 per equity share of face value of INR 10 each for FY23 (i.e., 200% of the face value), subject to the approval of the shareholders in the ensuing Annual General Meeting (‘AGM’),” the filing said.
Of late, a lot of new-age tech companies have resorted to issuance of bonus shares to prop up their investor base. Last year, beauty ecommerce startup Nykaa undertook such an exercise, while traveltech player EaseMyTrip also issued bonus shares to shareholders.
Founded in 1996 by Dinesh Agarwal and Brijesh Agarwal, IndiaMART operates an ecommerce marketplace that connects businesses with suppliers. The company went public in 2019 and has since been one of the few homegrown new-age tech companies whose shares are trading higher than their listing price.
While most new-age companies have floundered on the bourses over the last year or so, IndiaMART has surged ahead on account of its strong business fundamentals and focus on profitability. The company reported a consolidated net profit of INR 283.8 Cr in FY23 as against a profit of INR 297.6 Cr in FY22.
Shares of the company closed 2.25% higher at INR 5364.15 on the BSE on Friday (April 28).