VST Industries shares rally 20% as stock turns ex-bonus today; key details

Shares of VST Industries Ltd hit their 20 per cent upper circuit limit in Friday's trade, as the stock turned ex-date for share bonus in the 10:1 ratio. The cigarette stock hit its circuit limit at Rs 486.70 apiece on BSE, which was its 52-week high level. Friday is also the record date for ascertaining the eligibility of shareholders entitled for issue of bonus equity shares of the company.

At its 93rd AGM on August 29, the company board approved via ordinary resolution the capitalisaion of reserves of the company and issue of bonus equity shares

The bonus shares would be credited to the respective beneficiary accounts of the shareholders with their respective Depository Participant and in the case of members who hold equity shares in physical form, the bonus shares would be allotted in compliance with the guidelines issued by SEBI. 

VST Industries is headquartered in Hyderabad. It has a manufacturing facility at Hyderabad and Toopran (Telangana) and its principal activities are manufacture & sale of cigarettes and unmanufactured tobacco.

The company reported a 36 per cent YoY drop in standalone profit after tax at Rs 53.58 crore in the June quarter on 4 per cent fall in sales at Rs 423.15 crore, as per AceEquity. The scrip is not tracked by many brokerages. 

In a July note, PhillipCapital noted that VST has initiated shifting of its manufacturing operations from Azamabad Industrial Area to its own existing manufacturing facility at Toopran, Consequently. VST Industries has initiated the process to monetise the Azamabad property including land & buildings therein which it bought in FY23 from the Telangana government at Rs 348 crore. These are expected to be completed in FY25 and one-time income from sales of assets will get reflected in other income, the brokerage said.