Balmer Lawrie dips 6% after bonus issue is shelved

Balmer Lawrie dips 6% after bonus issue is shelved

Agency News

Balmer Lawrie and Company shed 6.6 percent intraday on September 18 after the company deferred the bonus issue plan.

In its meeting on September 17, the company's board took up the recommendation of bonus shares but deferred the plan.

In the morning hours, Balmer Lawrie and Company took a hit and was quoting at Rs 171.25, down Rs 8.95, or 4.97 percent, on the BSE.

Earlier, the board of Balmer Lawrie & Co had decided to consider an issue of bonus shares. Eventually, there was a rumour that the PSU major may have declared a bonus issue in the ratio of 3:1 (three shares for every one). In 2013, the company had rewarded its shareholders with a 3:4 (three shares for every four held) bonus issue. But the withdrawal of the plan has made a negative impact on investors and it got reflected on the trade on Wednesday.

For FY19, Balmer Lawrie had posted a profit of ₹188.50 crore on revenues of ₹1,775.20 crore.