VRL Logistics Ltd (ISIN: INE366I01010) has announced its first-ever bonus share issue, setting Thursday, August 14, as the record date for eligible shareholders. The company's board has approved a 1:1 bonus issue, marking a significant milestone in VRL Logistics' corporate history.

Bonus Issue Details

• Ratio: One bonus share for every one share held
• Record Date: Thursday, August 14
• Last Date to Buy: Today (to be eligible for the bonus issue)

Impact on Shareholders

The bonus issue will effectively double the number of shares in investors' portfolios without any additional cost. For instance, if an investor holds 100 shares of VRL Logistics, they will receive an additional 100 shares after the bonus issue is implemented.

Share Price Adjustment

It's important to note that the share price will be adjusted proportionally post-issue to maintain the same overall value of shareholders' holdings. This adjustment ensures that the total market capitalization of the company remains unchanged immediately after the bonus shares are credited.

Eligibility and Trading Cycle

Investors looking to benefit from this bonus issue must purchase VRL Logistics shares before the ex-date. Due to the T+1 settlement cycle currently in place in the Indian stock market, shares bought today will be reflected in investors' demat accounts by the record date, making them eligible for the bonus issue.

Historical Significance

This bonus share issuance is a landmark event for VRL Logistics, as it represents the first time in the company's history that it is distributing free shares to its eligible shareholders. The move is often seen as a way to reward existing shareholders and potentially improve stock liquidity.

Investor Considerations

While the bonus issue is generally viewed positively, investors should remember that it does not directly impact the fundamental value of their holdings. The total value of their investment remains the same, split across a larger number of shares.

As VRL Logistics prepares for this significant corporate action, investors and market watchers will be keen to observe its impact on trading volumes and overall market sentiment towards the stock in the coming days.

VRL Logistics , a prominent logistics and transport company in India, has made a significant announcement that is set to benefit its shareholders. The company has declared a 1:1 bonus share issue, a move that will effectively double its paid-up share capital.

Bonus Share Details

Under this bonus issue, shareholders of VRL Logistics will receive one new fully paid-up equity share for every existing share they hold. The company has set August 14 as the record date for this corporate action. Investors holding shares of VRL Logistics on this date will be eligible to receive the bonus shares.

Trading and Capital Structure

The newly issued bonus shares are scheduled to be available for trading on August 19. This corporate action will have a substantial impact on the company's capital structure. VRL Logistics' paid-up share capital is set to double from the current 8.74 crore equity shares to 17.49 crore equity shares. The total value of these shares will amount to Rs 17,493.70 lakh.

Source of Bonus Shares

The company plans to issue these bonus shares by capitalizing its reserves. VRL Logistics has substantial reserves totaling over Rs 99,000 lakh, which include securities premium, general reserves, capital redemption reserve, and retained earnings. The bonus shares will be issued from these reserves.

Company Profile

VRL Logistics operates as a logistics and transport company, specializing in parcel services and last-mile delivery across India. The company's extensive network allows it to provide comprehensive logistics solutions to its clients.

Market Response

Despite the announcement of the bonus issue, which is generally viewed positively by investors, VRL Logistics' shares closed 1.37% lower at Rs 556.00 on the day of the announcement. This slight dip could be due to various market factors and may not necessarily reflect the long-term impact of the bonus issue.

Implications for Shareholders

This bonus issue represents a significant value proposition for existing shareholders. While it doesn't directly increase the monetary value of their holdings, it does increase the number of shares they own. This can potentially lead to increased liquidity in the stock and might make it more accessible to a broader range of investors.

Shareholders should note the important dates:

• Record Date: August 14
• Trading Commencement Date for Bonus Shares: August 19

It's advisable for investors to consult with their financial advisors to understand the implications of this corporate action on their individual investment strategies.