3:1 Bonus Shares & Rs 37.50 Dividend: Record Date Fixed; Buy For Target Rs. 16,200-20,000

A well-known producer of reinforced polyamide from nylon waste, reclaimed rubber from used tyres, and engineered products die-cut from end-of-life tyres, GRP Ltd. was founded in 1974. With seven manufacturing facilities spread throughout India and an installed capacity of 81,200 MT annually, the company has five business verticals: reclaim rubber, engineering plastics, repurposed polyolefins, polymer composite, and custom die forms.

GRP Bonus Shares

For the purpose of bonus shares in 3:1 i.e., 3 new fully paidup equity shares of Rs. 10/- each for every 1 existing fully paidup equity share of Rs. 10/- each, the company has finalized Saturday, 27th July, 2024 as the record date as per the data available on BSE.

Issue of Bonus Equity Shares To the Shareholders of the Company

"With a view to rationalize the capital structure, Board of Directors in its meeting held on June 29, 2024 have proposed to issue bonus shares in the ratio of 3:1 [i.e. 3 (Three) fully paid up equity shares for every 1 (One) fully paid up equity share held] to the shareholders appearing in the Register of Members as on the Record Date. The new equity bonus shares to be allotted and issued shall be subject to the terms of Articles of Association of the Company and shall rank pari passu in all respects with the existing fully paid equity shares of the Company. For this purpose a sum of Rs.399.99 lakhs will be capitalised out of total free reserves and surplus of Rs.16,685.74 lakhs as on 31st March, 2024. Pursuant to the provisions of Section 63 of the Companies Act, 2013, approval of the Members is required for issuance of Bonus Shares to the Members of the Company by way of passing an Ordinary Resolution. Accordingly, the Board of Directors is of the opinion that the aforesaid issue of Bonus shares, which is commensurate with the Golden Jubilee Year of Company formation, is in the best interest of the Company," said GRP in a regulatory filing.

Important Note For Investors

"The allotment of shares pursuant to the bonus issue shall be made only in dematerialized form and thus, in case of members who hold equity shares in dematerialized form, the bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the bonus equity shares shall be transferred to the Demat Suspense Account as per the SEBI Regulations," informed GRP to stock exchanges.

GRP Dividend Record Date

The Board recommends a dividend of Rs 37.50/- per equity share (375%) of the face value of Rs 10/- each for the year ended 31st March 2024.

"If the dividend as recommended by the Board of Directors is approved at the Annual General Meeting, payment of such dividend will be credited / dispatched within 30 days from 2nd August, 2024: i) To all Beneficial Owners in respect of shares held in dematerialised form as per the data as may be made available by the National Securities Depository Limited and the Central Depository Services (India) Limited as at the close of business hours on 26th July, 2024. ii) To all members in respect of shares held in physical form whose names stand on the Register of Members as at the close of business hours on 26th July, 2024," said GRP in a stock exchange filing on 18th July.

GRP Share Price Target

"Tire retreading company GRP LTD is currently overbought at Rs. 14,318. However, any slump up to 30% could present a dip in buying or averaging opportunity. In such a situation, those interested can explore the buying range between Rs. 13,500 and Rs. 12,000, with a target price of Rs. 16,200-20,000. However, I recommend setting the stop loss at Rs. 11,400 when holding the stock for a suggested period of 2-10 weeks," V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) commented.

Disclaimer

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