New Delhi: Homegrown FMCG major Marico Ltd is planning issue of bonus shares for which it is seeking shareholders nod, besides reclassifying its authorised share capital to enable the move.
The promoters and institutional investors hold around 93 per cent of the current paid up equity share capital of the company, thereby leaving a limited free float, Marico said in a BSE filing.
"Thus in order to increase the overall liquidity to enable more broad-based investor participation, the board of directors recommends a bonus issue of one equity share for every one equity share by capitalising a part of the amount standing to the credit of securities premium and/or free reserves of the company", it added.
The issue of bonus shares would require increase in the authorised equity share capital of the company, it said.
"Accordingly, the Board of Directors has proposed to reclassify the existing authorised equity share capital of the company of Rs 215 crore (to be) divided into 150 crore equity shares of Re 1 each and 6.5 crore preference shares of Rs 10 each", it said.
The current authorised share capital of the company is Rs 215 crore, divided into 115 crore equity shares of Re 1 each and ten crore preference share of Rs 10 each.