Bonus Issue: VST Industries has announced a bonus issue of 10 shares for every 1 share held by shareholders on the record date (September 6, 2024). This is the first time the company has issued bonus shares.
- Impact: The bonus issue is likely to have led to a surge in the stock price on the ex-bonus trading day. However, the overall value of an investor’s holding may not change significantly as the bonus shares are issued at a discount to the market price.
- Radhakishan Damani: As a major shareholder (34.7% stake as of June 30, 2024), Radhakishan Damani is expected to be one of the biggest beneficiaries of this bonus issue.