Ruchira Papers shares trade ex-bonus, stock jumps

Shares of Ruchira Papers Ltd started trading ex-bonus in Monday's deals, a day ahead of the record date for its bonus issue of equity shares. The stock surged more than 6% to ₹134 per share on the BSE in early trading session.

The company last week had revised the ‘Record Date’ to Tuesday, October 11, 2022 (instead of Monday, 10th day of October 2022) to determine eligible shareholders entitled to receive bonus shares in the ratio of 1:10 i.e., one new fully paid-up equity share of ₹10/- each to be issued for every ten equity shares held. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

The company in August announced that its board of directors have considered and approved “Issue of bonus shares in the ratio of 1:10 i.e. 1 (One) new fully paid-up equity share of Rs. 10/ each to be issued for every 10 (Ten) equity shares held, subject to approval of shareholders of the Company at ensuing AGM. The board has fixed Monday, 10th day of October 2022 as record date for the purpose of determining the members entitle to receive bonus shares."

Ruchira Papers is engaged in the manufacturing of Kraft Paper and Writing & Printing Paper. Writing and Printing Paper is used for multiple purposes like printing and stationery etc. The paper stock has rallied about 51% in a year's period, whereas it is up more than 70% in 2022 (YTD) so far as compared to about 3% fall in benchmark BSE Sensex. 

For the first quarter ended June 2022 of the current fiscal or Q1 FY23, Ruchira Papers' net profit surged to ₹11.6 crore as compared to ₹4.5 crore in the year-ago quarter. Meanwhile, its revenue jumped to ₹199 crore during the quarter under review as against ₹126 crore in the corresponding quarter of the previous fiscal.