Board of Directors has approved the issuance of fully paid bonus shares in a 1:1 ratio
Sinclairs Hotels Limited announced on December 22, 2023, that its Board of Directors has approved the issuance of fully paid bonus shares in a 1:1 ratio. This decision, made during a meeting on Friday, is contingent upon obtaining shareholders’ approval and will be sourced from the company’s free reserves generated from profits. The record date for bonus entitlement will be disclosed at a later time.
As of the current pre-bonus state, the equity share capital stands at Rs 5,12,60,000/-, comprising 2,56,30,000 equity shares valued at Rs 2/- each. Post the bonus issuance, the equity share capital will double, reaching Rs 10,25,20,000/-, with 5,12,60,000 equity shares at Rs 2/- each.
To formalise this decision, Sinclairs Hotels Limited has scheduled an extraordinary general meeting for shareholders on January 18, 2024, to seek approval for the bonus share issuance.
It’s worth noting that the company recently concluded a buyback of 15,20,000 equity shares at Rs 200 per share, totaling Rs 30,40,00,000. The buyback, involving shares priced at Rs 2 each, was completed on October 25, 2023.
Commenting on the bonus share issuance, Navin Suchanti, Chairman of Sinclairs Hotels, stated, “Our commitment lies in maximising shareholder value, and through the issuance of bonus shares, we continue to reward our shareholders following the recent share buyback.”
