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Roto Pumps Ltd. (NSE: ROTP.NS), one of the prominent pump industry manufacturers, has issued a statement stating that its Board of Directors will be meeting soon to consider the issue of bonus equity shares. This action has the potential to make a significant difference to current shareholders and the capital structure of the company.
Background and Recent Bonus Issue
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Roto Pumps last distributed bonus shares in July 2023, 1:1, giving one bonus share per existing share to investors.
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The last record date for the bonus was July 8, 2023, and the ex-bonus date was July 7, 2023.
Current Announcement
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The company has informed the stock exchanges of its plans to consider a fresh bonus issue in a future board meeting.
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Points like the bonus ratio, record date, and ex-bonus date will be decided and notified subsequent to the board meeting.
Recent Corporate Actions
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In November 2024, Roto Pumps carried out a stock split, lowering the face value of its shares from ₹2 to ₹1, which makes shares more affordable to retail investors.
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The company has a good track record of consistent dividends, and recently in May 2024, a final dividend of ₹1.88 per share was announced.
Shareholder Impact
Bonus issues are given cost-free, multiplying the shares outstanding of investors but not altering their total value.
These corporate acts are intended to increase liquidity as well as thank long-term holders.
Market Performance
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On May 2, 2025, Roto Pumps's shares were selling at ₹218.06 and had a market capitalization of around ₹1,369.75 crore.
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The company registered strong long-term performance with over 100% appreciation in three-year share prices.
Sectoral Context
Roto Pumps is a player in the irrigation and water management industry, competing with the likes of Shakti Pumps, KSB Ltd., and Kirloskar Brothers.
What's Next?
Investors need to keep an eye on the outcome of the next board meeting, which will make clear the details of the bonus issue and the timeline.
The announcement is likely to create interest among current and potential shareholders, and may have an impact on trading volumes and share price movement.
Sources: Moneycontrol, India Infoline, Angel One, ET Money, Economic Times
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