Kitex Garments, a renowned multibagger smallcap stock, has announced a 2:1 bonus share issue—its first bonus issuance in seven years. Eligible shareholders will receive two bonus shares for every one share held as of the record date, offering a significant benefit for long-term investors. The announcement follows a spectacular stock rally, with Kitex Garments delivering a 221% return over the past six months, far outperforming the Sensex’s negative return of 3.2% during the same period.
Kitex Garments Bonus Share Record Date
The board of directors at Kitex Garments has finalized Friday, January 17, 2025, as the record date to determine shareholder eligibility for the bonus share issuance. This means investors must hold the stock on or before this date to qualify for the 2:1 bonus.
Bonus Share Allotment and Trading Date
Kitex Garments has also announced that the allotment date for the bonus shares will be Monday, January 20, 2025. The newly issued shares will be made available for trading starting from Tuesday, January 21, 2025, allowing shareholders to leverage this bonus for future trades.
Kitex Garments: Past Bonus and Stock Performance
This marks the first bonus share issuance from Kitex Garments since 2017, when the company had approved a 2:5 bonus (two bonus shares for every five shares). The company’s decision to issue bonus shares aligns with its commitment to reward shareholders, especially after a tremendous performance in recent years. Over the past five years, Kitex Garments has delivered an astounding 457% return, reaffirming its status as a favorite among smallcap investors.
Kitex Garments Share Price Movement
As of Friday, January 10, 2025, Kitex Garments’ stock closed at ₹689.85 on the BSE, up 1.32% from its previous close. The stock has witnessed remarkable growth, with a 52-week high of ₹900 and a 52-week low of ₹176.80, reflecting strong investor confidence and growth potential.
Why Bonus Shares Matter
Bonus shares are issued to make a stock more affordable for retail investors, especially when the stock price has seen significant appreciation. With Kitex Garments already in high demand, the bonus issue is expected to attract more participation from retail investors and increase liquidity in the market.
Investors eyeing Kitex Garments should take note of the key dates—January 17, 2025 (record date) and January 21, 2025 (trading date)—to maximize their benefits from this exciting development.
