Big Reward For Investors! 5:4 Bonus Share Issue Approved By This Stock; Growth Ahead?

Previously known as Visco Trade Associates Ltd., GAMCO Limited is a non-banking financial organisation based in India that specialises in short- and long-term loans as well as share and securities investments. Visco Trade Associates Limited is a non-banking financial organisation with its headquarters in India. Following the Board of Directors' announcement of 5:4 bonus shares, Gamco's shares closed Friday's trading session 4.60% higher at Rs 84.62, with a market capitalisation of Rs 210.84Cr.

Gamco Bonus Issue

The Board of Directors of the company, at its meeting held on Thursday, 20th February, 2025 considered and approved "The issue of Bonus Shares in the ratio of 05:04 i.e. 05(Five) fully paid-up equity share for every 04(Four) existing equity share having face value of Rs. 2/- (Rupees Two only) each, to the eligible equity shareholders of the Company as on the record date, subject to the approval of the shareholders of the Company. The Record Date for bonus issue will be intimated in due course," said Gamco in a stock exchange filing.

3,00,17,500 new equity shares of Rs. 2/- each will be issued as bonus shares according to the company.

"Pursuant to SEBI (ICDR) Regulations and Listing Regulations, the allotment of shares in bonus issue shall be made only in dematerialised form and thus, in case of members who hold equity shares in dematerialised form, the bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the bonus equity shares shall be transferred to the Suspense Account opened in this regard, within such time as prescribed by law and the relevant authorities, subject to guidelines issued by SEBI in this regard," said Gamco in a regulatory statement.

Gamco News

The Board also approved "Increase in authorized share capital of the company from Rs. 5,65,30,000 (Rupees Five Crore Sixty-Five Lakhs and Thirty Thousand Only) divided into 2,82,65,000 (Two Crore Eighty-Two Lakhs and Sixty-Five Thousand Only) Equity Shares of Rs. 2/- (Rupees Two Only) each to Rs. 15,00,00,000 (Rupees Fifteen Crore Only) divided into 7,50,00,000 (Seven Crore Fifty Lakhs Only) Equity Shares of Rs. 2/- (Rupees Two Only) each ranking pari - passu in all respect with the existing Equity Shares of the Company," Gamco informed stock exchanges.

Gamco Share Price Target

"Gamco stock price is slightly bullish on the Daily charts with strong support at 81. A Daily close above resistance of 91 could lead to a target of 104 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

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