Central finance proposes 8.5% bonus shares for shareholders; LTP 123

248th Board meeting of the company has proposed to distribute 8.5% bonus along with cash for tax purpose. 

The dividend will be distributed to the shareholders from the net profit of fy 2073/74. Bonus shares worth Rs 6.63 crores will be distributed along with Rs 34.93 lakh cash dividend (for tax purpose). The right shares will also be eligible for the proposed bonus shares. 

The decision is however subject to approval from Central bank and upcoming AGM of the company. 

Central Finance had recently issued 50% right shares to its shareholders. The issuance of right share escalated the company's capital to Rs 78.09 crores. The bonus will further increase the capital to 84.72 crores , meeting the capital requirement for national level finance company.

CFCL was last trade for Rs 121 in the stock exchange.