3:1 Bonus Shares & Rs 2 Interim Dividend Declared By Footwear Stock; Time To Create Wealth?

With more than 390 luxurious outlets spread over India, Redtape Ltd. is a reputable and well-known fashion and lifestyle brand. The company is becoming one of the best brands of clothing and footwear for women, men, and kids. The company's global reach extends to 17 countries on six continents. It is ranked as one of the leading footwear brands, dominating the market. India, the United Kingdom, the United States, Australia, Turkey, the United Arab Emirates, France, Germany, West Asia, and South Africa are among the specialised areas where the brand has established a significant presence. Following the Board of Directors' announcement of bonus shares and a dividend, Redtape's shares closed Thursday's trading session on the BSE 2.23% higher at Rs 888.65 per share, with a market capitalisation of Rs 12,281.31 Cr.

Redtape Dividend

The Board of Directors of the company at its meeting held on December 26th, 2024, has "declared and approved Interim Dividend of Rs. 2 (100%) per equity share of Rs. 2/- each for the financial year 2024-25. With reference to Company's letter dated 20th December 2024 and pursuant to Regulation 42 of the Listing Regulations, the Company has fixed Friday, 3 January 2024 as the record date for determining entitlement of Members for payment of Interim Dividend for FY2024-25," said the footwear company in a stock exchange filing on Thursday.

Redtape Bonus Shares

"Subject to approval of Members of the Company, the Board has proposed to issue Bonus Shares to of its Rs. equity shareholders in the proportion of 3:1 i.e. 3 (Three) new fully paid-up equity share 2/- (Rupees Two) each for every 1 (One) existing fully paid-up equity share of Rs. 2/- (Rupees Two) each," said Redtape in a regulatory filing.

41,46,05,700 equity shares of Rs. 2 each would be issued as bonus shares according to the company.

"As the Issue of Bonus Shares is dependent on the SEBI approval the date of credit of Bonus shares cannot be estimated at this point in time. Details surrounding the record date, estimated date of credit of shares etc. shall be provided upon receipt of aforementioned approval from SEBI," informed Redtape to stock exchanges on 26th December, Thursday.

Redtape News

"Subject to approval of Members of the Company, the Board has proposed to increase the authorised share capital of the Company from the present Rs. 30,02,00,000/- (Rupees Thirty Crores and Two Lakhs Only) divided into 15,00,50,000 (Fifteen Crores and Fifty Thousand Only) Equity Shares of Rs. 2/- (Rupee Two) each aggregating 30,01,00,000 (Rupees Thirty Crore One Lakh) & 50,000 (Fifty Thousand) Preference Shares of Rs. 2 cach aggregating Rs. 1,00,000 (Rupees One Lakh Only) to Rs. 1,12,01,00,000/- (Rupees One hundred Twelve Crore One Lakh Only) divided into 56,00,00,000 (Fifty-Six Crore) Equity Shares of Rs. 2/- (Rupee Two) each & 50,000 (Fifty Thousand) Preference Shares of Rs. 2/- (Rupee Two) each by the creation of additional 40,99,50,000 (Forty Crores Ninety-Nine Lakhs Fifty Thousand only) equity shares of Rs. 2/- (Rupees Two) each, ranking pari-passu in all respect with the existing Equity Shares of the Company," Redtape confirmed in a stock exchange filing on Thursday.

Redtape Share Price Target

"Redtape stock price is bearish on the Daily charts with strong resistance at 915. A Daily close below support of 867 could lead to a target of 818 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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