Tailored for Growth: Shine Fashions Stitching More Value for Shareholders with Bonus Shares

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Shine Fashions (India) Ltd, one of the major textile and fabric trading companies, is ready to approve the issuance of bonus shares to its equity shareholders. The action, following a period of strong growth and expansion efforts, is a clear indication that the company is set to reward its investors and maximize shareholder value.

Brief Introduction

Shine Fashions (India) Ltd, established in 2019, has quickly made its presence felt in importing and trading in different types of fabrics and raw materials used for textiles. The company is close to being debt-free, boasts a robust return on equity, and recently made a few key strategic announcements, including new production projects and preferential issue of shares.

Board Approval for Bonus Shares

The Board of Directors is to authorize the issue of bonus shares to existing equity shareholders as a measure to enhance liquidity and reward investor confidence.
The company has been recently granted in-principle approval from the stock exchange for issuing 560,000 equity shares of ₹5 each at a price not less than ₹207 per share, to both promoters and non-promoters on a preferential basis.

Recent Equity and Expansion Initiatives

Shine Fashions has reserved 90,000 equity shares on conversion of warrants at issue price of ₹207 per share to non-promoter entities.
The company is establishing its first manufacturing facility for interlining (technical textile) in Bhiwandi, Maharashtra, with the first phase to be completed within four months and an investment of ₹12 crores.
Land and building acquisition for the new manufacturing facility is in progress, facilitating the company's expansion plan.

Financial Performance and Market Position

The share price of the company has been highly volatile, with an all-time high of ₹430 in March 2025, and has traded between ₹155.35 and ₹448.95 in the 52-week period.
The company is nearly debt-free, with a robust three-year ROE of 26.9% and better debtor days, indicating good working capital management.
Though the company has made repeated profits, it has not given out dividends, so the bonus share issue has been a significant reward to shareholders.

Leadership and Corporate Developments

The firm is headed by Chairman Anil Zaverchand Mehta and CEO Purvi Anil Sanghvi.
Recent board meetings have centered on capital raising, new project approvals, and SEBI compliance.

What This Means for Shareholders

The bonus share issue will raise the number of shares held by current investors, which could enhance liquidity and market participation.

The step is in line with Shine Fashions' long-term expansion and capital structure refinement strategy, as seen through recent project introductions and preference share issues.

Relevant Sources: Business Standard, The Economic Times, Screener