Marico Industries Ltd has announced a 1.1 bonus issue of equity shares aggregating Rs 29 crore (Rs 290 million) and recommended a third interim dividend of 25 per cent.
The board, which met on Monday, also decided to opt for early redemption of eight per cent bonus redeemable preference shares (RePS) of Rs 29 crore by March 31, Marico said in a release in Mumbai.
"Marico has been delivering consistent financial performance for the past 17 quarters now and the new product or business turnover has been rising at about 20 per cent. The medium to long term outlook on the business is positive," company chairman and managing director Harsh Mariwala said.
Against this backdrop, Marico was confident of servicing the larger equity arising from the bonus and continuing its progressive distribution policy, while exploring other innovative avenues of distribution to shareholders, he added.
The proposed bonus would ensure that more equity shares would be available for trading. The bonus issue in April 2002 had led to doubling of the floating stock to 1 crore (10 million) shares.
On interim dividend, it said Marico had been declaring dividends every quarter for the last 11 consecutive quarters.
Marico, in September 2002, had issued the bonus RePS, due for redemption on or before October 1, 2005. The company has a very comfortable liquidity position well beyond the "war chest" [of Rs 25 crore (Rs 250 million)] and with limited requirements for investments foreseen for business in near future, it made sense for early redemption of RePS, it added.
Marico has convened an extra-ordinary general meeting on April 21, 2004 to get the shareholders approval for these proposals.
Bonus equity shares would be allotted to shareholders after receiving the approval at the EGM, it said.
The record date for both redemption of RePS and the third interim dividend is March 23, it added.
Marico had declared an interim dividend of 15 per cent and 20 per cent during the first and second quarter, respectively of the current fiscal.
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