Shares of smallcap company RedTape Limited saw an impressive rise on Tuesday, climbing by more than 10% on the Bombay Stock Exchange (BSE) to reach Rs 199.85. This sharp increase occurred on the record date for the company’s bonus shares.
RedTape has issued bonus shares in a 3:1 ratio, offering 3 bonus shares to investors for every share they hold. This marks the company’s first-ever bonus share distribution.
Interim Dividend and Stock Growth
In addition to the bonus shares, RedTape recently declared an interim dividend of Rs 2 per share. The record date for the dividend was set for January 3, 2025.
Looking at the company’s performance over the past year, its shares have appreciated by 15%. RedTape’s market capitalization has surpassed Rs 10,800 crore.
Company Background and Financial Performance
RedTape was listed on stock exchanges in August 2023, following a demerger from its parent company, Mirza International.
At the time of the demerger announcement in November 2021, RedTape accounted for about 55% of Mirza International’s total sales.
The demerger was officially approved by the National Company Law Tribunal (NCLT) in February 2023. The Mirza family holds a 71% stake in RedTape, while public shareholding stands at 28.20%.
For the September 2024 quarter, RedTape reported a revenue of Rs 415.78 crore, with a profit of Rs 25.68 crore. In the June 2024 quarter, the company’s revenue was Rs 440.61 crore, with a profit of Rs 30.51 crore.
In the September quarter of the current financial year, RedTape recorded revenues of Rs 415.78 crore and a profit of Rs 25.68 crore.
In the June 2024 quarter, the company’s revenue increased to Rs 440.61 crore with a profit of Rs 30.51 crore.
