The stock of VRL Logistics, a leading company in the transport and logistics sector, rose by over 4% today and is currently trading at ₹597.
The reason behind this rise is the company’s announcement that it is planning to issue bonus shares to its shareholders for the first time. A board meeting is scheduled for July 4 to discuss and approve this bonus issue.
What Are Bonus Shares?
Bonus shares are free shares given to existing shareholders as a reward. These shares are issued from the company’s profits or reserves, not by raising new funds.
Investors get extra shares in a certain ratio based on how many they already own, and they don’t need to pay anything for them.
Issuing bonus shares helps attract more investors and increases the total number of shares in the market. However, the company has not yet announced the record date for this bonus issue.
Only those who buy the shares before the ex-date will be eligible for the bonus shares. Anyone buying on or after the ex-date won’t get them.
Strong Growth and Past Share Buyback
In 2023, VRL Logistics had also bought back shares worth ₹61 crore, which means the company repurchased its own shares from the market.
As of the March 2025 quarter, the company’s promoters held 60.24% stake. After the bonus share announcement on Friday, the share price jumped by over 4%.
For comparison, on July 3, 2020, the share price was ₹160.65, and it has now climbed to ₹597 as of June 30, 2025—a growth of about 110% in four years.
From One Truck to Over 6,000 Vehicles
VRL Logistics was founded in 1976 by Vijay Sankeshwar, who is now known as the “Trucking King” of India. The company began with just one truck
and today owns around 6,177 commercial vehicles. Its current market capitalization is approximately ₹5,106 crore.