3:1 bonus issue: Inox Wind jumps 9%, hits all-time high as board proposes issuance of bonus shares

Inox Wind bonus share: Inox Wind shares jumped in trade on Thursday, April 25, after the company announced that its board has proposed the issuance of bonus shares in a 3:1 ratio (three bonus equity shares for every one existing equity) share) out of the accumulated reserves of the company.

In its own words, "Bonus Equity Shares in a ratio of 3:1, i.e., 3 (three) new fully paid-up bonus equity shares of Rs. 10/- each for every 1 (one) existing equity share of Rs. 10/- each held by the shareholders of the company as of the record date, subject to the approval of shareholders and other statutory and regulatory approvals, consents, permissions, conditions, and sanctions, as may be necessary."

Reacting to the news, shares of the company rallied as much as 9.2 per cent to hit a record high of Rs 658.50 apiece on the BSE. 

The bonus shares shall be issued to the shareholders whose names appear in the Register of Members as of the ‘Record Date’. 

The company said in its press release that the issuance of bonus shares will not only bolster the company's capital base without any cash outflow but will also enhance the liquidity of Inox Wind’s shares, broadening the participation of a wider set of investors.

Throughout FY24, Inox Wind achieved a significant milestone by turning profitable in the Sep-Dec'23 quarter. This achievement has been on the back of a significant ramp-up in business operations. Further, the sector provides huge tailwinds for future growth, the company said.

Inox Wind's stock performance

Inox Wind shares have given multi-bagger returns to its investors in the past 12 months. The stock has jumped a whopping 503 per cent during the period. The company's top official in February, in an interaction with PTI, said that it was likely to continue its growth trajectory after its business turned around in the December 2023 quarter, driven by a strong order book and higher revenues.

Its parent, INOXGFL Group's Executive Director Devansh Jain, said the group firm is expected to continue to register a consistent rise in its profit after tax (PAT) over the next few quarters, backed by growth in business amid favourable market conditions.