1:1 Bonus Issue Announcement: This Small-cap Hotel Company Announces Bonus Shares; Record Date Inside!
The company’s shares have delivered an impressive return of over 90 per cent to its shareholders in just 6 months only.
EIH Associated Hotels primarily owns premium luxury hotels under the 'Oberoi' and 'Trident' brands, operating as a joint venture between the Oberoi Family and the Rajan Raheja Group.
During the board meeting, the company announced a bonus issue of 1 fully paid-up bonus equity share of Rs 10 each for every existing fully paid-up equity share of Rs 10 each held by shareholders as of the record date. Shareholder approval for this proposal will be sought at the upcoming Annual General Meeting ("AGM"). The record date has been set as Monday, 29th July 2024, to determine the list of eligible shareholders entitled to receive the bonus shares, pending shareholder approval.
Pre-bonus paid-up share capital was Rs. 30,46,81,470 divided into 3,04,68,147 shares. Post-bonus paid-up share capital will be divided into 6,09,36,294 shares.
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Share Performance:
On Friday the shares of EIH Associated Hotels closed the day at Rs 908.15 per share. The company’s current market capitalisation stands at Rs 2766.96 crore. The stock has delivered a return of over 74 per cent in the past 1 year.
Financial performance:
According to the Quarterly Results, in Q4 FY24, EIH Associated Hotels reported a revenue of Rs 132 crore and an operating profit of Rs 50 crore. The operating profit margin for the quarter stands at 38 per cent. The company’s net profit stood at Rs 37 crore. In FY24, the company reported a revenue of Rs 385 crore compared to Rs 337 crore and a net profit of Rs 81 crore, compared to a profit of Rs 65 crore in the previous year.
According to the shareholding pattern, the company's promoters own 75 per cent, and 11.33 per cent is held by public investors.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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