Cosmo Films, a manufacturer of semi-finished products of plastics, as per the schedule met for its board meeting today for audited results and bonus issue. Bonus issue is nothing but the issuance of shares to existing shareholders in some specific ratio. In the bonus share issuance, the company’s free reserves and surplus is moved to equity capital and from this addition in capital-fresh equity shares are issued to shareholders in a specific ratio.
The company has decided to issue bonus shares in the ratio of 1:2 i.e. one share for every 2 shares held by the shareholders. In the filing the company said, “Issue of Bonus Equity Shares in the proportion of 1 (One) Equity Share of Rs.10/- each for every 2 (Two) existing Equity Shares of Rs. 10/- each held by the shareholders of the Company as on the Record Date, subject to the approval of shareholders of the Company through Postal Ballot and other applicable statutory and regulatory approvals; as may be required. The record date for reckoning eligible shareholders entitled to receive bonus shares will be communicated later”.
Also, the board has given the nod for “Increase in Authorised Share Capital of the Company from Rs.25,00,00,000/- (Rupees Twenty Five Crores) divided into 2,50,00,000 Equity Shares of Rs.10/- each, to Rs.60,00,00,000/- (Rupees Sixty Crores) divided into 6,00,00,000 Equity Shares of Rs.10/- each and consequent alteration in the capital clause of the Memorandum of Association of the Company subject to approval of shareholders through postal ballot, and any other applicable statutory and regulatory approvals”. Also, the change in the name of the company has been approved to “Cosmo First Limited”.
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Story first published: Monday, May 9, 2022, 22:50 [IST]