Tobacco company, VST Industries touched 20% upper circuit on Friday, September 6, 2024, as the stock turned ex-bonus for its first ever bonus issue in the ratio of 10:1. Accordingly, the share price of VST has also been adjusted. Among the biggest winners of VST's hefty bonus rewards is stock market's ace investor Radhakishan Damani.
VST Industries Share Price:
The smallcap stock froze at its 20% upper circuit to Rs 486.70 apiece on September 6, with a market cap of Rs 8,267.14 crore. An upper circuit means that the stock witnessed only buyers and zero sellers. This level is also VST's new 52-week high.
Data from BSE showed that the price-to-equity ratio of VST is at 25.35x, and that of the price-to-book ratio is at 5.50x. While the company's return on equity is strong at 21.67%.
VST Industries Bonus Issue:
VST announced a 10:1 bonus issue - meaning - ten new equity shares having a face value of Rs 10 each to be allotted on one existing share with a face value of Rs 10.
The company received approval from BSE and NSE for the allotment of 15,44,19,200 equity shares of Rs 10 face value each in the ratio of 10:1.
The last date to be eligible for VST's bonus issue is fixed on September 6 which is the record date and ex-bonus date. Hence, only those investors are eligible who are holding VST shares by the end of September 6, 2024.
While the 10:1 bonus issue is the first for VST Industries, the company has not split its shares as of now. Meanwhile, since May 2001, VST Industries holds a track record of paying hefty dividends. So far, the company delivered about 24 dividends. In the last 12 months, the company paid up to Rs 150 dividend per share.
Radhakishan Damani VST Industries Bonus Gains:
As per the shareholding pattern, by the end of the June 2024 quarter, Damani holds 5,35,185 equity shares or 3.47% of VST Industries. Taking the 10:1 bonus issue ratio, for every 1 share in VST, Damani will get 10 bonus shares. Hence, his shareholding will be 53,51,850 (5,35,185 X 10) shares post bonus issue.
BUY/SELL VST Industries Share:
As per Trendlyne data, the consensus recommendation from 1 analyst for VST Industries Ltd. is BUY. EPS is expected to grow by 29.8% in FY25. The target price of VST shares will be modified according to the bonus issue adjustments. In pre-bonus era, the average 1-year target price was set at Rs 4,172.
About VST Industries:
The Vazir Sultan Tobacco Company Limited was incorporated on 10th November 1930, under the Hyderabad Companies Act No. IV of 1320 Fasli and now governed under the Companies Act, 1956/2013. The name of the Company was subsequently changed to VST Industries Limited on 30th April 1983. The Company has its Registered Office in Azamabad, Hyderabad.
The Company's shares are listed on BSE Limited and National Stock Exchange of India Limited.
The Company has a manufacturing facility at Hyderabad and Toopran (Telangana) and its principal activities are the manufacture & sale of cigarettes and unmanufactured tobacco.
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