Tuesday, June 29, 2010

South India Paper Plans for Bonus Issue for Fiscal 2010

India-based paper and paper products maker, South India Paper Mills Ltd (BOM:516108) shot up on the Bombay Stock Exchange (BSE) after the company announced the bonus issue plans for the fiscal 2010.

The company stocks jumped to Rs.94 with gains of over 13% in the morning trades on the BSE on Friday, June 11, 2010. The company on Thursday had announced that the company board will meet on 29 July 2010 to consider issue of bonus shares.

The stock hit a high of Rs 99.65 so far during the day, which is a record high for the counter. The large-cap stock had outperformed the market over the past one month till 10 June 2010, rising 21.58% as compared to the Sensex's 2.36% decline.

The last time the company had issued bonus was in October 2004 in the ratio of 1:1. South India Paper Mills' net profit soared 113.8% to Rs 4.49 crore on 21.9% increase in net sales to Rs 33.33 crore in Q4 March 2010 over Q4 March 2009.