Double Dhamaka: 4:1 Bonus Issue Allotment, Rs 0.50/Sh Dividend On July 31; Penny Stock Hits 20% Upper Circut

Goel Food Products, a penny stock under the hotels & resorts segment, touched a new 52-week high on July 31 due to the record date for its bonus issue and dividend. Goel Food has come up with double treats for investors. The company will deliver a 4:1 bonus issue for which the allotment of shares is announced, and secondly, will deliver a Rs 0.50 per share dividend.

After ex-bonus and ex-dividend, Goel Food share price ended at Rs 41.10 apiece, which is its 20% upper circuit on BSE with market cap of Rs 77.48 crore. The stock's 52-week high and low is at Rs 44.69 apiece and Rs 25.10 apiece.

Goel Food Products Bonus Issue Allotment:

The company turned ex-bonus on July 31 for its bonus issue in the ratio of 4:1. Meaning, the company will reward 4 (Four) equity shares of Rs 10/- each for every 1 (One) existing equity share of 2 10/- each held by the shareholders of the Company as on record date.

On Wednesday only, the company announced that it received in-principal approval from BSE for issue and proposed allotment of 1,50,81,600 Equity shares of Rs.10/- each as bonus share in the ratio of 4 new Equity Share for every 1 existing Equity Share held in the Company.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

For example: If an investor is holding 500 shares of Goel Food Products as of July 31, then he or she will be eligible to receive 2,000 bonus shares, taking the total to 2,500 shareholdings in the company. Also, the trading price level has been adjusted.

This is the first-ever bonus issue by Goel Food.

However, there are certain conditions that investors must met to receive the bonus issues:

- Submission of listing application form for the new securities to be allotted and documents as per Format available on the website of BSE Ltd. under following link -
http://www.bseindia.com/static/about/downloads.aspx

- Payment of Additional listing fees on the enhanced capital, if applicable.

- Receipt of statutory and other approvals and compliance with guidelines issued by the statutory authorities including SEBI, RBI, MCA etc.

- Compliance with any change in the guidelines, regulations directions of the Exchange or any statutory authorities, documentary requirements from time to time.

- Compliance with the Companies Act, 2013 and other applicable laws.

- Allotment of Equity Shares shall only be made in dematerialized form.

Goel Food Products Dividend:

Further, Goel Food turned ex-dividend for its dividend payout of Rs 0.50 per fully paid-up equity share of Rs 10/- each for the financial year ended March 31, 2024.

This dividend payout is also the first by the company. Adjusting to the bonus issue, the company's dividend yield is at 0.24%.

About Goel Food Products:

Established in 1996, BIKA Group (Also known as Goel Food Products Limited formerly known as Goel Food Products Private Limited) is one of the pioneer banquet chains in West Bengal. With 8 luxury banquet spaces across Kolkata and Howrah, Bika group hosts more than 1000 weddings and social functions every year.