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At a time, when promoters are slogging to dilute stake in their company to meet the minimum public shareholding norm, Warren Tea promoters have adopted a novel way.
Currently, promoters hold 83.51 per cent stake in the company.
The company has announced bonus shares for the existing shareholders in the ratio of 7:10, which means, seven shares will be given free for every 10 shares held in the company.
And interestingly, promoters of Warren Tea will not be entitled to get the bonus issue. This in effect would reduce the shareholding of the promoters on the expanded equity base.
The stock crashed 20 per cent to Rs 296.60 on the BSE.
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