Hotel Stock Announces Bonus Share Update Ahead of Rs 2 Dividend Due On 9th Feb

In the consumer discretionary industry, Advani Hotels & Resorts (India) Limited is a small-cap firm. India is home to Advani Hotels & Resorts (India) Limited. The company's primary business is hotel management, which it does through its Goa-based Caravela Beach Resort. A substantial bonus share update has been announced by the firm ahead of Rs 2 per share dividend due on 9th February.

"Pursuant to Section 63 and other applicable provisions of the Companies Act, 2013 and all other applicable laws and regulations, a sum of Rs 9,24,38,500 standing to the credit of the Free Reserves as per the audited Balance Sheet of the Company as on March 31, 2023 forming a portion of the undistributed profit of the Company, be capitalised and that the amount so capitalised be applied fully in paying up in full at par 4,62,19,250 new Equity Shares, having a face value of Rs 2/- each (hereinafter referred to as a "Bonus Shares") in the share capital of the Company and that the said Bonus Shares be appropriated by way of capital and not as income and allotted and distributed as fully paid Bonus Shares to those members whose names appear in the records of the Company's Depositories as the holders of the existing Equity Shares on such date (hereinafter referred to as "the Record Date") as may be hereinafter determined by the Board of Directors in the proportion of one Equity Share fully paid up against one Equity Share fully paid up held by such persons respectively provided that the issue and allotment of the said Bonus Shares shall be subject to the following terms and conditions:

a)the receipt of approvals, if any, as may be necessary from the Securities and Exchange Board of India (SEBI) and/or the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in which the Company's existing Equity Shares are listed for trading.

b) that the necessary approval of the Reserve Bank of India, if any, is obtained under the Foreign Exchange Management Act, 1999 and subsequent amendments, if any, thereto, for the issue and allottment of the Bonus Shares to those members of the Company who are the residents outside India as on the "Record Date".

c) that the said Bonus Shares shall, in all respects, rank pari passu with the existing Equity Shares of the Company except they shall be entitled to participate only in such dividends as may be declared subsequent to the allotment of the Bonus Shares and that they shall not be entitled to participate in the dividend that may be declared in respect of the financial year or for any period prior to the allotment of the said Bonus Shares. The said Bonus Shares shall also be subject in all respects to the provisions of the Company's Memorandum and Articles of Association.

d)that no letters of allotment shall be issued to the allottees of the said Bonus Shares and the Bonus Shares allotted shall be credited into the Demat Account of the Allottee(s) as maintained with the Depositories within the prescribed time limit statutorily applicable from the date of allottment.

e)for the purpose of enabling the Board of Directors to implement the resolution, the Board of Directors be and are hereby authorised to do the following acts:

i) to negotiate with the relevant statutory authorities and to settle with them any questions or difficulties that may arise in connection with the issue of the Bonus Shares in such manner as the Board may deem appropriate and that the Board of Directors may agree to any condition(s) as may be imposed by the above Authorities in connection with the said Bonus issue and generally to give such directions, execute such documents or writings as necessary and take such action as may be considered appropriate in respect of the above issue and the allottment / distribution of shares thereof.

ii) without prejudice to the generality of the foregoing provisions, in particular to make, if so, required by the terms of sanction of the concerned statutory authorities or any of them, such consequential changes in the quantum and proportion of the said Bonus Shares, as they may consider fit, and in case the requisite approval from the requisite authority or any of them cannot be obtained for the issue of the said Bonus Shares and / or the allottment / distribution thereof to any of the Shareholders, in that event, the issue of the said Bonus Shares shall stand rescinded."

At its meeting on January 29, 2024, the Company's Board of Directors discussed the proposal to issue fully paid bonus equity shares at par in the ratio of one equity share against one equity share already held by the members, whose names are on file with the depositories as of the date the Board will determine after receiving approval from the Shareholders.

After the members give their approval to the resolutions included in the Notice for the Postal Ballot, the record date to ascertain which members will be eligible for the bonus shares resulting from the aforementioned will be determined in consensus with the Stock Exchanges.

As per the data of Trendlyne, Advani Hotels & Resorts (India) Ltd. has an upcoming dividend of Rs 2.00 per share due on 09 Feb 2024.