The Hindu Business Line : Maharaja Shree Umaid Mills to issue bonus shares

L.N. Bangur Group company Maharaja Shree Umaid Mills Ltd has decided to issue bonus shares. The board of directors has already recommended 35 per cent dividend for 2005-06 and will formally propose the bonus ratio on July 26 after consulting the management, a highly placed company source told Business Line.

The company's total equity stands at Rs 4.32 crore, whereas the free reserves were placed at Rs 58.46 crore at the end of 2004-05 fiscal. According to market sources, listing of the company's stock on the NSE may follow the issue of bonus shares. The securities of the company are now listed on the BSE. It has delisted its stock from the Jaipur SE from January 16.

"Though the aim of the bonus share is to reward shareholders, the door may open for the NSE listing after increase in the equity base," sources said.

The promoters, as on March 31, held 83.7 per cent stake in the company, while the public holding was placed at 8.47 per cent of the paid up capital.

In another stock related development, the company, during the fourth quarter to March 31 has raised its investments in another group outfit — Andhra Pradesh Paper Mills — from 11.6 per cent to 15.26 per cent.

Meanwhile, the company has put on hold the proposal for sale of its 2 lakh sq. ft. land as also the real estate on it at the heart of Jaipur city. However, the land and properties at Kota in Rajasthan are up for sale. The Kota property had been one of the textile establishments of the company, closed down since March 6, 1985. The asset, lying idle ever since the closure, is likely to fetch around Rs 40 crore according to current market price.

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Maharaja Shree Umaid Mills to issue bonus shares