Redtape Ltd, a footwear company trading as a small-cap on exchanges, has announced double rewards for investors. In the first week of January 2025, the company will turn ex-date for its double New Year rewards namely a bonus issue of 3:1 and a 100% dividend payout. Ahead of these corporate actions, Redtape shares have broadly been bullish. Last week, the stock zoomed by 3.62%.

Redtape Ltd Share Price:

On December 27, Redtape stock price closed at Rs 888.55 apiece on BSE, with a market cap of Rs 12,279.93 crore. The stock is nearly Rs 100 away from hitting its 52-week high of Rs 981.80 apiece, while its 52-week low is at Rs 454.75 apiece.

Further, last week, the stock zoomed by 3.62%. On a month-on-month basis, Redtape is higher by 9.10%. In half-yearly performance, Redtape has advanced by a whopping 14%. Year-to-date, the stock jumped by 85% on BSE so far.

Redtape Bonus Issue:

The footwear company has declared Bonus Shares to its Rs. equity shareholders in the proportion of 3: 1 i.e. 3 (Three) new fully paid-up equity shares 2/- (Rupees Two) each for every 1 (One) existing fully paid-up equity share of Rs. 2/- (Rupees Two) each.

A total of 41,46,05,700 Equity shares of Rs. 2 each would be issued as Bonus shares from and out of the credit balance of the Profit and Loss Account, being part of the free reserves of the Company, as per the audited financial statements financial year ended March 31, 2024.

That being said, the reserves needed for implementing bonus shares are Rs 82,92,11,400, while the company has reserves available of Rs 331,30,86,713 for capitalisation as of March 31, 2024.

The record date will be announced soon. Redtape said, “As the Issue of Bonus Shares is dependent on the SEBI approval the date of credit of Bonus shares cannot be estimated at this point in time. Details surrounding the record date, estimated date of credit of shares etc. shall be provided upon receipt of aforementioned approval from SEBI.”

Redtape Ltd Dividend:

The company declared an Interim Dividend of Rs. 2 (100%) per equity share of Rs. 2/- each for the financial year 2024-25. For this, the company has fixed January 3, 2025, as the record date for determining the entitlement of Members for payment of Interim Dividends for FY2024-25.

Redtape Share Fundamentals:

Among key positives for Redtape stock as per Trendlyne data are – Debt to Equity Ratio of 0.25 is less than 1 and healthy, which implies that its assets are financed mainly through equity; Return on Equity(ROE) for the last financial year was 27.17%, more than 20% in the last financial year, indicating an efficient use of shareholder’s capital to generate profit; Fund; Promoter Share Holding increased by 0.01% in the most recent quarter to 71.8%; Interest Coverage Ratio is 10.09, higher than 1.5, which means that it is able to meet its interest payments comfortably with its earnings (EBIT); and Promoter Pledges are zero.

As per Markets Mojo, the consensus recommendation on Redtape is HOLD due to High Management Efficiency with a high ROCE of 27.01%; Healthy long-term growth as Net Sales have grown by an annual rate of 148.80% and Operating profit at 385.47%; the stock has generated a return of 91.20% in the last 1 year, much higher than the market (BSE 500) returns of 15.70%.

Also, the technical trend has improved from Mildly Bullish on 27-Dec-24. Multiple factors for the stock are Bullish like Bollinger Band, KST and OBV, as per Markets Mojo.

About Redtape Ltd:

Redtape is known as India’s trusted leading Fashion & Lifestyle brand with over 390+ opulent stores across PAN India. Also, the company’s Global Footprint spans 17 Countries over 6 Continents. The brand has gained a strong foothold in the niche markets of India, the UK, the US, Australia, Turkiye, UAE, France, Germany, West Asia South Africa and others.

Thereby, RedTape is known for emerging as one of the Finest Brands of Footwear and Clothing for Men, Women and Kids. It has emerged as a complete Family Fashion Destination by providing the Best International Styles and World-Class Quality through Shoes, Apparels and Accessories for all age groups.