Godfrey Phillips India (GPI) has announced a generous bonus share allocation, set to take effect next week. The company's board has recommended a 2:1 bonus issue, which means shareholders will receive two new shares for every one share they currently hold.

Key Details of the Bonus Issue

• Ratio: 2:1 (two new shares for every one existing share)
• Record Date: September 16
• Eligibility: Shareholders must be on the company's records as of the record date

Implications for Investors

Under India's T+1 settlement cycle, investors looking to benefit from this bonus issue must purchase GPI shares at least one trading day before the record date. This ensures they are registered as shareholders in time to qualify for the bonus allocation.

Industry Context

Godfrey Phillips India is not alone in its move to reward shareholders. Another company, GHV Infra Projects, has also announced a bonus issue with the same record date. GHV Infra's bonus issue is structured as follows:

• Ratio: 3:2 (three new shares for every two existing shares)
• Volume: Up to 4.32 crore shares
• Face Value: Rs 5.00 per share

Market Impact

Bonus issues are generally viewed positively by the market as they increase the number of outstanding shares without affecting the company's underlying value. For Godfrey Phillips India shareholders, this 2:1 bonus issue effectively triples their shareholding, potentially improving liquidity and making the stock more accessible to a broader range of investors.

Investors should note that while bonus issues increase the number of shares they own, the overall value of their holding remains the same as the stock price typically adjusts proportionately. However, such corporate actions often generate increased interest in the stock and can lead to higher trading volumes in the short term.

As the record date approaches, market participants will be closely watching Godfrey Phillips India's stock performance and any potential price movements leading up to September 16.

Godfrey Phillips India Limited , a prominent player in the tobacco industry, held its 88th Annual General Meeting (AGM) on September 4, 2025, where shareholders approved several significant resolutions that will shape the company's future governance and capital structure.

Key Appointments and Re-appointments

Shareholders gave their nod to the re-appointment of Mr. Sumant Bharadwaj as an Independent Director for a second five-year term, effective from February 13, 2026, to February 12, 2031. Mr. Bharadwaj, an advocate and partner at the law firm "Legal Remedy," brings a wealth of legal expertise to the board. His memberships in various prestigious legal associations, including the Bar Council of Delhi, the Supreme Court Bar Association, and international organizations, underscore his broad legal acumen.

In another important move, the company appointed M/s Chandrasekaran Associates as its Secretarial Auditors for a five-year term spanning from FY 2025-26 to FY 2029-30. Chandrasekaran Associates, a well-established firm of Practicing Company Secretaries, boasts over three decades of experience and has been peer-reviewed by the Institute of Company Secretaries of India (ICSI).

Increase in Authorized Share Capital

A significant resolution passed at the AGM was the increase in the company's Authorized Share Capital to Rs. 50.00 crore. This new capital structure comprises 24.70 crore equity shares of Rs. 2.00 each and 60,000 preference shares of Rs. 100.00 each. This move allows Godfrey Phillips India greater flexibility in its capital management and potential future fundraising efforts.

Dividend Declaration and Bonus Share Issuance

The company's strong financial performance was reflected in its shareholder rewards. The Board recommended a total dividend of Rs. 95.00 per share for the financial year 2024-25, which includes an interim dividend of Rs. 35.00 per share already paid. This represents a substantial 70% increase from the previous year's dividend of Rs. 56.00 per share.

In a move to further reward shareholders and improve stock liquidity, the Board has proposed issuing bonus shares in the ratio of 2:1, subject to shareholder approval. This decision comes after regulatory clarifications that had previously delayed the implementation of this proposal.

Financial Performance Highlights

Dr. Bina Modi, Chairperson and Managing Director, reported robust financial results for FY 2024-25:

• The tobacco segment contributed 99% of sales, including Rs. 2,120.00 crore from international business operations.

Corporate Governance and ESG Initiatives

The company reaffirmed its commitment to strong corporate governance and environmental, social, and governance (ESG) practices. Notably, Godfrey Phillips India significantly improved its score on the Dow Jones Sustainability Index, jumping from 43 to 64, reflecting its dedication to sustainable business practices.

The AGM also highlighted the company's CSR initiatives, including:

• A comprehensive health screening program for over 1,000 daily traders, hawkers, and their families in various cities
• Ongoing efforts in water security and climate resilience for tobacco farming communities

As Godfrey Phillips India moves forward, these strategic decisions and initiatives demonstrate the company's focus on sustainable growth, shareholder value, and responsible corporate citizenship in an evolving business landscape.