Shares of India’s leading paints manufacturer Berger Paints India Ltd. jumped more than 3 percent in trade on Tuesday after the company informed that it would consider a bonus issue in its upcoming board meeting.

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In a stock exchange filing on Tuesday, Berger Paints said that the board of directors of the company may consider the proposal for issue of ‘bonus shares’ by capitalisation of reserves in the forthcoming meeting to be held on August 9 at 12 noon.

This is the first bonus announcement by Berger Paints after seven years. The company had announced a 2:5 bonus issue in 2016. This means that shareholders back then had received two bonus shares for every five that they held.

The board will also approve the company’s unaudited financial results (standalone and consolidated) for the quarter ended June 2023 during the meeting.

Berger Paints had earlier informed that the 99th annual general meeting (AGM) of the company will be held on August 11, 2023, at 11 AM through video conferencing or other audio-visual means.

In the previous board meeting held on May 15, 2023, the board had recommended a dividend of Rs 3.20 (320 percent) per equity share of Re 1 each for the financial year ended March 2023. Dividend on equity shares, if declared, at the 99th AGM will be paid on August 21, 2023, to those members who are entitled thereto.

Shares of Berger Paints ended 2.95 percent higher at Rs 702.50.