Shares of GTV Engineering declined 6% in Thursday's trading session following the board's approval of bonus share allotment. According to reports from Essential Business Intelligence, the stock traded 5.58% lower at ₹21.32 on the BSE at around 12:09 p.m. on October 8, compared to its previous close at ₹22.58. The stock has been under pressure, shedding more than 68.9% during the past week, reflecting broader market concerns about the bonus issue. Investors are closely tracking the impact of the bonus share allotment, along with the increase in the company's total outstanding equity shares and paid-up share capital.
In an exchange filing dated October 8, GTV Engineering's board approved the allotment of 10,16,00,732 fully paid-up equity shares of ₹2 each as bonus shares. As reported by Essential Business Intelligence, the allotment was made to shareholders whose names appeared in the company's Register of Members as of October 7, which was the record date fixed for the bonus issue. The bonus shares have been issued in a 2:1 ratio, meaning shareholders will receive two bonus equity shares of ₹2 each for every one equity share of ₹2 held in the company.
Following the allotment, GTV Engineering's paid-up equity share capital has increased from ₹10.16 crore, comprising 5,08,00,366 equity shares of ₹2 each, to ₹30.48 crore. According to reports from Essential Business Intelligence, the total number of equity shares has consequently risen to 15,24,01,098 shares of ₹2 each. The company stated that the bonus equity shares will rank equal to its existing equity shares and carry the same rights in all respects. The increase in share capital reflects the company's decision to reward existing shareholders through this bonus issue.
The stock currently trades with a price-to-earnings multiple of 6.25 times and has a market capitalization of ₹327.6 crore. As reported by Essential Business Intelligence, the company's shares have been in focus over the past week due to the upcoming bonus issue, with investors tracking the impact on the company's total outstanding equity shares and paid-up share capital. The significant decline in share price despite the bonus announcement indicates market concerns about the timing or structure of the share allotment.
