The Hindu Business Line : Gangotri Textiles board okays stock split, 1:1 bonus issue

GANGOTRI Textiles Ltd today decided to issue 1:1 bonus to its shareholders, which will double its present equity base of Rs 4.8 crore to Rs 9.6 crore.

The company has also proposed to split the face value of its Rs 10 share into two shares of Rs 5 each. The stock split is, according to the company officials, to enhance greater liquidity.

The board of directors of the Gangotri Textiles has decided to capitalise the company's reserves for issuing the bonus shares. Gangotri's total reserves as on March 31, 2005 stood at Rs 23.7 crore.

The company has decided to convene an extra-ordinary general meeting on September 24 to effect today's board decision, a communication from the company said.

Gangotri has also proposed to increase the authorised share capital of the company to Rs 25 crore from the existing Rs 10 crore as the board has proposed to increase its paid-up capital in the near future. The rise in the capital base would be achieved either by way of a public issue or through rights issue or by way of a warrant issue to be finalised shortly.

The Rs 180-crore turnover company, which has chalked up plans to strengthen its `Tibre' apparel brand, is on an expansion-cum-forward integration project (covering spinning, weaving, processing and garmenting facilities) at an outlay of Rs 351 crore. The project funding would be through term loan as well as higher equity capital infusion route.

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