V-Mart Retail Issues 5.95 Cr Bonus Shares in 3:1 Ratio
By Ankur Chandra | Published at: Jun 24, 2025 04:23 PM IST
Gurugram, June 24, 2025 – V-Mart Retail Ltd (NSE: VMART | BSE: 534976) has announced the allotment of 5.95 CR fully-paid bonus equity shares to eligible shareholders. The issue significantly expands its equity base, prompting a technical stock price adjustment ahead of ex-bonus trading.
The allotment is done in the ratio of 3:1, with the new shares having equal rights in all aspects as the existing ones. The bonus share’s record date was June 23, 2025. Shareholders who appeared on the register on the record date were allotted bonus shares having a face value of ₹10 each.
As of 2:03 PM, the stock is trading at ₹906.90, down 1.79% for the day, after touching an intraday high of ₹929.90 earlier in the session.
Bonus Allotment Details
As per the filing under Regulation 30 of SEBI (LODR) Regulations, 2015, the Nomination and Remuneration Committee approved the allotment on June 24, 2025. The allotment was made to members whose names appeared in the register as on the record date of June 23, 2025.
The bonus shares have been issued in the ratio of 3 new shares for every 1 existing share, each with a face value of ₹10.
Share Capital Before and After Bonus Allotment
| Particulars | Pre-Bonus | Post-Bonus |
|---|---|---|
| Total Equity Shares | 1,98,43,451 | 7,93,73,804 |
| Face Value per Share (₹) | 10 | 10 |
| Paid-up Equity Share Capital | ₹19,84,34,510 | ₹79,37,38,040 |
Bonus Issue Details
| Item | Details |
|---|---|
| Bonus Ratio | 3:1 (Three for every One) |
| Number of Shares Allotted | 5,95,30,353 equity shares |
| Record Date | June 23, 2025 |
| Face Value per Share | ₹10 |
| Status of Shares | Fully paid, rank pari-passu |
| Regulation Cited | Regulation 30 of SEBI (LODR), 2015 |
The company confirmed that the bonus shares will rank pari-passu with existing equity shares in all respects, ensuring equal rights and obligations for shareholders.
What Does This Mean?
For shareholders, this 3:1 bonus issue means a tripling of shareholding without additional investment. For every 1 share held, investors now own 4. While the number of shares increases, the overall market value of holdings remains the same post-adjustment, as the stock price adjusts downward proportionally.
From a broader perspective:
- Increased liquidity: More shares in the market can enhance trading volumes and improve liquidity.
- Improved affordability: Lower share price post-bonus can make the stock more accessible to retail investors.
- Investor confidence signal: A bonus issue of this magnitude often reflects management’s confidence in the company’s growth trajectory and balance sheet strength.
What’s essential to note is that bonus issues do not alter the intrinsic value of the company or individual ownership percentage.
Stock Price Reaction
In early trade today, V-Mart shares reflected a marginal dip driven by the expected technical adjustment following the recent bonus issue. However, this drop is not reflective of negative sentiment. Instead, it is part of the expected technical adjustment due to the bonus issue.
The stock is still trading on a cum-bonus basis, and the adjustment to a lower ex-bonus price (theoretical ex-bonus price: ₹923.40 ÷ 4 = ₹230.85) will reflect once the new bonus shares are credited and active in the trading system.
Market Outlook
The adjusted share price and trading in expanded quantity are likely to take effect shortly, aligning with standard post-corporate action processing on the exchanges. The adjusted price may improve retail participation and trading volumes, while the expanded equity base could enhance market visibility and long-term shareholder value.
About the Company
V-Mart Retail Limited is a listed value fashion and lifestyle retail chain headquartered in Gurugram, India. It operates over 400 stores across Tier-II and Tier-III cities, offering affordable apparel, footwear, home furnishings, and general merchandise. The company is listed on both BSE and NSE and has consistently rewarded shareholders through periodic corporate actions including bonus issues and dividends.
REF: https://nsearchives.nseindia.com/corporate/VMART_24062025101555_Allotment.pdf
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