VRL Logistics announces its first ever bonus issue, check details

VRL Logistics Ltd. has announced its inaugural issuance of bonus shares. At the conclusion of the board meeting on July 4, the company approved a 1:1 bonus issue, allowing shareholders to receive one bonus share for each share held. This decision marks the first instance of VRL Logistics issuing bonus shares, following a ₹61 crore share buyback in 2023.

The logistics company's stock saw a slight rise of 0.77%, at ₹600. The record date for the bonus will be announced later.

VRL Logistics stated, "The bonus shares will be issued out of the eligible reserves including securities premium account, general reserve, capital redemption reserve, retained earnings available as of March 31, 2025, the company said." The bonus shares are due to be credited by September 2, 2025.

The company will specify the record date for the bonus issue at a later time, as per their exchange filing. This bonus issuance is intended to capitalise on VRL's free reserves, which in turn will enhance their Earnings Per Share (EPS) and paid-up capital while reducing reserves.

"Record date for the said bonus issue will be intimated separately, the company said in an exchange filing," VRL Logistics confirmed. Currently, the promoters hold a 60.24% stake in the company as of the end of the March quarter. Investors should note that only shares purchased before the ex-date will be eligible for the bonus allocation.

In the context of VRL Logistics' performance on the stock market, this move aims to leverage free reserves strategically, impacting earnings and capital structure positively. The company has positioned itself to boost shareholder value and market perception through this bonus issue.

While the stock is slightly down today, such strategic moves may influence long-term investor confidence positively. The logistics sector sees VRL Logistics compete with other key players, who may also consider similar strategies to enhance shareholder value. Analysts will watch closely as VRL Logistics implements this bonus issue, aligning with broader industry trends.