Financial Daily from THE HINDU group of publications
Tuesday, Mar 16, 2004
Financial Daily from THE HINDU group of publications Tuesday, Mar 16, 2004 |
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Bonus Announcements Corporate - Bonus Announcements Marico Industries declares 1:1 bonus Our Bureau
Mumbai , March 15 THE board of Marico Industries Ltd has declared a bonus issue in the ratio of one share for every share held aggregating to Rs 29 crore. The company had offered a 1:1 bonus share issue in mid-2002. The board has also recommended the third interim dividend of Rs 2.50 per share of Rs 10 each. Marico is offering an interim dividend for the 12th time in a row. The company has also offered an early redemption of 2.90 crore eight per cent redeemable preference shares (RePS) of Rs 10 each. These shares were to be redeemed at par on or before October 1, 2005. They can now be now redeemed at par. The company has convened an extra ordinary general meeting on April 21 to seek shareholders' approval for the bonus issue. ``Marico has been delivering consistent financial performance for the past 17 quarters now. It has made strategic shifts in its product portfolio in order to drive growth up the value chain,'' the company said in a press release quoting its Chairman and Managing Director, Mr Harsh Mariwala. The new product business turnover has been rising, now at to about 20 per cent of total. ``Many prototypes are currently running and will be scaled up based on progress against action standards. The medium to long-term outlook on the business is positive,'' Mr Mariwala was quoted as saying. The aggregate dividends declared during the last three years (FY 02 to FY 04) have been Rs 60 crore (including the dividend of 8 per cent on the RePS), about Rs 200 per share. This is in addition to the equity bonus issue (Rs 14.5 crore) in FY 03 and the bonus redeemable preference shares issue (Rs 29 crore) in FY 03. This bonus issue will ensure that more equity shares are available in the market for trading. Since March 31, 2003, Marico's market capitalisation has increased by about 87 per cent from about Rs 425 crore to about Rs 800 crore, the release said. The company said it has been holding a `war chest' in the region of Rs 25 crore. ``The company has a very comfortable liquidity position well beyond this war chest. With limited requirements for investments foreseen for the business in the near future it makes sense to redeem the RePS earlier than scheduled,'' the release said.
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