Tobacco company, VST Industries is all set to trade more than 15.44 crore bonus equity shares on stock exchanges BSE and NSE. Accordingly, the stock price will be in focus ahead. VST has been trending over the past few weeks of September due to a stake sale by its ace investor Radhakishan Damani and a bonus issue of a 10:1 ratio. YTD, VST shares are up by 46%.

VST Industries Ltd Share Price:

Last week, on Friday, VST shares ended at Rs 449.50 apiece, up by 1.6% on BSE with a market cap of Rs 7,635.26 crore. The stock is near its 52-week high of Rs 486.70 apiece, while it is higher by 56.3% from its 52-week low of Rs 287.55 apiece.

Data from BSE showed that VST’s price-to-equity ratio is at 2.56x, which is quite low. Also, the company’s return on equity is strong at 21.67%.

VST Industries Block Deal:

Recently, ace investor Radhakishan Damani sold 100,000 equity shares at Rs 439.05 each in VST Industries on BSE. The selloff was Rs 4.395 crore. Buyers were Thrift Savings Plan and Reliance Mutual Fund. This stake sale took place on September 19.

However, notably, this was the second stake sale by Damani last week. On September 17, Damani also sold 100,000 equity shares at Rs 439.19 each.

Not just that Damani also earlier in the September 9th session sold 173,316 equity shares at Rs 442.98 each.

VST Industries Bonus Issue:

On September 20, VST said, “We wish to inform you that the Company has received approval for the trading of 15,44,19,200 Bonus Equity Shares of Rs.10/- each from the Exchanges on 20th September 2024.”

Trading of these shares will commence from September 23, 2024.

VST turned ex-date on September 6 for its bonus issue ratio of 10:1. This meant that the company allotted ten new equity shares having a face value of Rs 10 each to be allotted on one existing share with a face value of Rs 10.

While the 10:1 bonus issue is the first for VST Industries, the company has not split its shares as of now. Meanwhile, since May 2001, VST Industries has held a track record of paying hefty dividends. So far, the company delivered about 24 dividends. In the last 12 months, the company paid up to Rs 150 dividend per share.

About VST Industries:

The Vazir Sultan Tobacco Company Limited was incorporated on 10th November 1930, under the Hyderabad Companies Act No. IV of 1320 Fasli and now governed under the Companies Act, 1956/2013. The name of the Company was subsequently changed to VST Industries Limited on 30th April 1983. The Company has its Registered Office in Azamabad, Hyderabad.

The Company’s shares are listed on BSE Limited and National Stock Exchange of India Limited. The Company has a manufacturing facility at Hyderabad and Toopran (Telangana) and its principal activities are the manufacture & sale of cigarettes and unmanufactured tobacco.

Story first published: Monday, September 23, 2024, 6:09 [IST]