IFL Enterprises shares jump up to 17%; board to consider bonus, buyback, dividend and more

Shares of IFL Enterprises surged more than 17 per cent during the trading session on Monday, before settling with big gains. The stock rallied after the company informed about the board meeting of directors to consider various issues, it informed through an exchange filing on Monday.

The company board is scheduled to be held on November 1, 2023 to consider issues like buyback, dividend distribution, bonus share issuance and collaboration with Charter Papers Pty Ltd, said the company in the exchange filing.

The board will discuss and evaluate a proposal for a share buyback program up to 10 per cent of paid-up capital and free reserves of the company. The proposed buyback price is up to Rs 17 per share. Also, the company board will consider the payment of interim dividends on the equity share for the financial year 2023-2024, it added.

The board will also discuss the issuance of bonus shares to existing shareholders. However, the ratio of bonus issue shall be determined later, if approved by the company board. And, the last agenda for the consideration shall be deliberate on the collaboration with Charter Paper Pty Ltd, a strategic partner based in Australia to support the company's upcoming operations.

Following the announcement of board meeting, shares of IFL industries jumped more than 17 per cent to Rs 13.25 on Monday, before finally settling at Rs 12.16, up 7 per cent from its previous close at Rs 11.32 on Friday. The stock has jumped more than 26 per cent in the last one year.

Considering the bonus issue, the company has previously announced two bonus issues in 1:1 and 1:4 ratio, along with a stock split in 1:10 ratio, since its debut at Dalal Street in March 2017. On an adjusted basis the stock has delivered more than 2,000 per cent returns to the investors.

IFL Enterprises, is a subsidiary of India Finsec. The company, incorporated in 2009, offers a diverse product range which includes all kinds of paper related items like writing paper, coated paper, A/4 paper, hi-bright, copier paper, duplex board, art and craft paper, notebooks, among others.

Also read: Hot stocks on October 16, 2023: Tata Motors, Delta Corp, SpiceJet, Vakrangee, Phoenix Mills and more

Also read: Stock recommendations by share market analysts for October 16, 2023: RITES, Tata Motors, Jamna Auto & Sequent Scientific

Also read: Top 10 stocks to watch on October 16, 2023: Dalmia Bharat, DMart, Texmaco Rail, CEAT, HDFC Bank, Jio Financial & others

Also read: Jio Financial Services, Ceat, ICICI Securities Ltd quarterly results, MCX to begin trading on new commodity derivatives platform in Top News on October 16: Stock market, Bank Nifty, crude oil outlook