This Radhakishan Damani-owned stock rose 7% in early deals today, here’s why  

Shares of VST Industries rose over 7% in early deals on Friday after the board of the tobacco firm approved the issue of bonus shares in the ratio of 10:1. The company will issue ten new bonus equity shares for each existing equity share. It has fixed Friday, August 30, 2024 as the record date to determine the eligibility of members to receive bonus shares.

VST Industries shares gained up to 7.41% to Rs 4290, opening at the high point of the day against the previous close of Rs 3993.75. Market cap of the firm climbed to Rs 6323.47 crore.

Meanwhile, ace investor and founder of Avenue Supermarts Radhakishan Damani  held 3.47% stake or 5.35 lakh shares at the end of June 2024 quarter.  According to the latest exchange data, Damani offloaded a partial stake in tobacco company VST Industries via bulk deals on Wednesday.

Damani sold about 2.62 lakh shares or about 1.7% stake in the company at Rs 4,102 apiece. The value of the bulk deal was Rs 107 crore.

The bonus shares will rank pari passu in all respects and carry the same rights as the existing equity shares of the company, the company said in its filing to the exchanges.

Total number of securities proposed to be issued is at 15,44,19,200 equity shares.

The company also logged a 36% fall in profit after tax (PAT) to Rs 53.58 crore in the June 2024 quarter against profit of Rs 83.70 crore in Q1FY24. On a sequential basis, profit fell 39% over Rs 88.20 crore reported in Q4FY24.

Revenue from operations fell 4% to Rs 423.86 crore in Q1 against Rs 440.85 crore in the year ago period. Revenue was down by 11% against Rs 475.98 crore in Q4FY24.