Garware Technical Fibres Bonus Issue: Shares of Garware Technical Fibres Limited will be in focus on Friday (January 3). This is because the textile company's stock will trade on ex-date in tomorrow's trading session.

Let us tell you that the textile sector company has announced bonus shares in the ratio of 4:1. This means that eligible shareholders will get four free shares for every one share. This is the first time the company has announced a bonus issue. The company has also paid Rs 16 per share as dividend from 2021 and has also bought back equity shares in early 2024.

Garware Technical Fibres had bought back its equity shares at a price of Rs 3800 per share between March 26 and April 5 last year. The stock is now trading well above the buyback price.

What is a bonus issue? (What is bonus issue)

Under the bonus issue, the company gives its shareholders extra shares in exchange for the existing shares. These shares are available for free. The company gives bonus shares from its profits or earnings. To explain it as an example, suppose you have 10 shares of a company and the company has announced a bonus issue in the ratio of 1:2. Under this, you will get 2 shares in exchange of every share and your 10 shares will turn into 20. Although the bonus issue increases the number of shares but the stock price gets divided in the same ratio.

Garware Technical Fibres Share History

Shares of Garware Technical Fibres on Thursday rose 1.5% or Rs 69 intra-day on the BSE. At 12:15 pm, the company's shares were trading at Rs 4681. Apart from this, the stock has run up 40% in 2024 while the share price has almost quadrupled in the last five years. The stock has gained up to 280% during this period. The 52-week high of the stock is Rs 4,925 while the low is Rs 3,116 per share. The total market cap of the company is Rs 9,261.90 crore.