The stock market is a place where investors buy and sell shares of listed companies. Several companies announce rewards for their shareholders, helping them to maximise their returns. Dividend distribution, bonus shares, and share repurchase are among many other corporate actions that benefit shareholders. IFF Enterprises, an SME stock with multibagger returns, has informed BSE that its board will meet on November 1 to consider a share buyback proposal, distribution of dividends, and bonus share issuance.
"The board will discuss and evaluate a proposal for a share buyback program of up to 10% of the paid-up capital and free reserves of the company. The proposed buyback price is up to Rs. 17 per share. This initiative aims to enhance shareholder value and optimise the capital structure," according to an exchange filing.
"The board will consider the payment of interim dividends on the equity share capital of the company for the financial year 2023-2024. This payout is a testament to the company's commitment to rewarding its investors," the filing said further.
"The board will discuss the issuance of bonus shares to existing shareholders. This decision aims to further enhance shareholder equity and promote investor confidence," it added.
IFL is a multibagger SME IPO. The company launched in IPO in 2017. It has already issued bonus shares to its shareholders twice since listing and has also split equity shares once. If the board agrees to announce a bonus, this would be the third such activity since the listing of the IPO.
IFL is a dynamic player in the paper industry. It recently signed a strategic MoU with Australian multinational paper manufacturer Charters Paper Pty Ltd. The partnership is aimed at boosting the geographical expansion and adding about Rs 600 crores to the top line.
According to a PTI report, the paper industry's total volume in the current financial year is expected to rise 5-7 per cent, similar to the last fiscal. The operating margin will likely remain healthy at 18 to 19 per cent.
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