Shares of VST Industries, a prominent cigarette and tobacco products maker, surged 20% on September 6 as the stock traded ex-bonus. The company had announced its first-ever bonus issue, offering 10 bonus shares for every one share held, with the record date set as September 6.
The record date determines which shareholders are eligible for corporate benefits like dividends or bonuses. VST Industries received approval from BSE and NSE to issue and allot 15 crore equity shares as bonus shares.
One of the big winners from this bonus issue is ace investor Radhakishan Damani, who held a 34.7% stake in the company as of June 30, 2024. Earlier, Damani had reduced his holding by 2.26% via block deals just before the announcement of the bonus issue and Q1FY25 results.
Despite this bonus news, VST Industries reported a 3.5% year-on-year drop in revenue for the quarter ending June 2024, posting ₹321.33 crore. Its EBITDA also took a hit, falling 30.4% YoY to ₹73.28 crore.
On the NSE, VST Industries’ stock was trading at ₹486.15 after the 20% jump. Year-to-date, the stock has gained 33%, outperforming Nifty’s 15% rise. Over the past 12 months, VST shares have risen 30%, slightly ahead of Nifty’s 28% gain.
