IndiaMART Board Proposes Bonus Share Issuance and INR 20/Share Dividend

• ByStartupStory     |    April 29, 2023

Despite a 5% YoY decrease in net profit for FY23, IndiaMART InterMESH’s board proposed a 1:1 bonus share issuance on Friday (April 28). The company has announced that the record date for determining the eligible shareholders for the bonus equity shares will be June 12, 2023.

IndiaMART has announced the recommendation of a bonus share issuance at a ratio of 1:1 for its equity shareholders. The bonus equity shares will be fully paid up and will be given for each existing equity share of INR 10 each fully paid up held by the shareholders as of the record date, which has been set for June 12, 2023. The company stated in an exchange filing that this proposal is subject to the approval of shareholders during the upcoming AGM.

Bonus shares are issued by companies to their shareholders in proportion to the shares they already hold, and can help reduce share prices, leading to increased participation from retail investors. IndiaMART InterMESH recently announced that its board would consider a proposal for a bonus share issue. The board has now recommended a dividend of INR 20 per equity share for the financial year 2022-23.

In an exchange filing, IndiaMART announced that its board has recommended a final dividend of INR 20 per equity share for FY23, subject to approval by the shareholders in the AGM. Bonus shares, which are additional shares given to shareholders in proportion to their existing holdings, are becoming increasingly popular among tech companies to attract and retain retail investors. Recently, startups such as Nykaa and EaseMyTrip have also issued bonus shares.

IndiaMART is an ecommerce marketplace founded by Dinesh Agarwal and Brijesh Agarwal in 1996, that connects businesses with suppliers. It went public in 2019 and has been one of the rare new-age tech companies whose shares are trading higher than their listing price. Unlike most companies that struggled during the pandemic, IndiaMART remained profitable and focused on its strong business fundamentals, leading to its success. The company reported a consolidated net profit of INR 283.8 Cr in FY23 compared to INR 297.6 Cr in FY22. On Friday (April 28), shares of the company closed 2.25% higher at INR 5364.15 on the BSE.

Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.

Follow Startup Story