Multibagger small-cap stock: VRL Logistics said on Friday that board has given its approval for issue of bonus shares in the ratio of 1:1. VRL Logistics share price edged higher after the announcement on July 4.
The board has approved a bonus share issue in a 1:1 ratio, meaning investors will receive one bonus share for each share they currently own as of the record date.
VRL Logistics bonus issue details
The company, in a filing with the exchange, mentioned that the specific record date for the bonus issue will be announced later.
According to BSE data, this marks the company’s first-ever bonus share issuance.
“ We hereby inform that the Board of Directors of the Company at its meeting held on today, i.e., 4 July 2025, have, interalia, considered and approved (subject to approval of the shareholders) the issue of bonus shares in the ratio of 1:1, i.e., 1 (one) new fully paid-up equity share of ₹ 10/- (Rupees Ten Only) each for every 1 (one) existing fully paid-up equity share of ₹ 10/- (Rupees Ten Only) each, to the eligible equity shareholders of the Company as on the record date, by capitalization of free reserves and accumulated surplus,” the company filing said.
According to data available on the BSE, this marks the first time the company will be issuing bonus shares to its shareholders.
Previously, in 2023, VRL Logistics completed a share buyback worth ₹61 crore.
The company stated that the bonus shares will be allotted from eligible reserves, which include the securities premium account, general reserve, capital redemption reserve, and retained earnings as of March 31, 2025.
These bonus shares are expected to be credited by or before September 2, 2025.
Bonus shares are typically issued to utilise free reserves, boost Earnings Per Share (EPS) and paid-up capital, and reduce accumulated reserves. They are distributed to shareholders at no extra cost and are often referred to as free shares.
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