In Friday’s trading session, the shares of a company engaged in manufacturing cigarettes surged by 7.4 percent on BSE to Rs. 4,290, after the company announced a 10:1 bonus issue and Q1 FY24-25 financial results.
At 02:00 p.m., the shares of VST Industries Limited were trading in the green at Rs. 4,102.9, up by 2.7 percent, compared to its previous closing price of Rs. 3,993.75, with a market cap of Rs. 6,335.7 crores.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25 as well as the bonus issue, through the recent filings with the stock exchanges on Thursday post-market hours.
The revenue from operations for Q1 FY24-25 stood at Rs. 423.2 crores, marking a 4 percent YoY decline from Rs. 440.7 crore in Q1 FY23-24, as well as an 11 percent decrease quarter-on-quarter from Rs. 475.05 crore in Q4 FY23-24.
The net profit declined by 36 percent to Rs. 53.6 crore in Q1 FY24-25 as against Rs. 83.7 crore in Q1 FY23-24, and on a quarter-on-quarter basis, it fell by 40 percent from Rs. 88.2 crore in Q4 FY23-24.
Further, the company’s Board recommended the issue of Bonus Shares in a 10:1 ratio. This means that shareholders will receive 10 new bonus equity shares of the face value of Rs. 10 each for every 1 equity share held.
The Board has fixed Friday, 30th August 2024, as the Record date to determine the eligibility of Members to receive bonus shares.
Also read
Previous News:
On 24th July, Radhakishan Damani offloaded a 2.28 percent stake through his investment firms, amounting to Rs. 143.6 crore via a bulk deal on NSE.
In a separate transaction, Derive Trading & Resorts Pvt. Ltd. sold 2.62 lakh equity shares valued at Rs. 107.8 crores in VST Industries on NSE, equivalent to a 1.7 percent stake, at an average price of Rs. 4,102.57 per share.
Additionally, Limited Damani Estate And Finance Private divested 90,000 equity shares in the company, representing a 0.58 percent stake, at an average price of Rs. 3,983.84, valued at Rs. 35.8 crore.
Shareholding Pattern:
As per the shareholding pattern of June 2024, the Promoters hold a 32.16 percent stake in the company, Foreign Institutional Investors (FII) hold a 1.83 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 53.37 percent and 12.64 percent stake in VST Industries, respectively.
As of June 2024 shareholding pattern with the BSE, the renowned investor Radhakishan Shivkishan Damani holds nearly 36.3 percent stake in the company.
Stock Performance:
The stock has delivered nearly positive returns of nearly 11.4 percent in one year as well as around 17.6 percent returns in the last six months. So far in 2024, the shares of VST Industries have given positive returns of about 21.2 percent.
About the company:
Incorporated in 1930, VST Industries Limited, erstwhile Vazir Sultan Tobacco Company, is engaged in the business of manufacturing and trading of cigarettes, tobacco and tobacco products.
Located in Hyderabad, the company is an associate undertaking of British American Tobacco Plc., the global leader in cigarettes.
Written by Shivani Singh
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