VST Industries Ltd shares exceeded its 20% upper circuit limit in Friday's session, as the firm reached the ex-date for a 10:1 share incentive. On the BSE, the cigarette stock reached its circuit limit of Rs 486.70 a share, marking a 52-week high. Friday is also the record date for determining the eligibility of shareholders eligible to receive bonus equity shares from the corporation.
At its 93rd AGM on August 29, the firm board approved via ordinary resolution the capitalization of the company's reserves and the issuance of bonus equity shares.
The bonus shares will be deposited to the shareholders' respective beneficiary accounts with their respective Depository Participant, and members who own equity shares in physical form would be granted the bonus shares in accordance with SEBI requirements.
VST Industries is headquartered in Hyderabad. It has production facilities in Hyderabad and Toopran (Telangana), and its primary businesses are the manufacture and sale of cigarettes and unmanufactured tobacco.
According to AceEquity, the company's standalone profit after tax fell 36% year on year to Rs 53.58 crore in the June quarter, on a 4% reduction in revenues to Rs 423.15 crore. Many brokerages do not follow the scrip.
In a July statement, PhillipCapital stated that VST has begun to relocate its production activities from the Azamabad Industrial Area to its current manufacturing plant in Toopran. VST Industries has begun the process of monetizing the Azamabad property, including land and buildings, which it purchased for Rs 348 crore from the Telangana government in FY23. These are projected to be completed by FY25, with one-time money from asset sales included in other income, according to the brokerage.
