Paper trading firm IFL Enterprises has announced twin corporate actions of bonus and dividend distribution. According to an exchange communique, the board of IFL Enterprises has approved a proposal for bonus issuance and payment of dividends.

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The company is set to issue bonus shares in an enticing 1:10 ratio. For every ten existing fully paid-up equity shares of Rs 1 each, shareholders will be granted one new bonus equity share.

"The board considered and recommended a bonus issue in the ratio of 1:10 i.e. 1 (One) New Bonus Equity Share for every 10 (Ten) existing fully paid up Equity Shares of Rs 1 each, subject to approval by the members and any other applicable statutory and regulatory approvals," it said.

The bonus shares will be credited to those members who will hold the equity shares as on a Record Date i.e. November 17.

After the bonus announcement, the company said that promoters are looking at increasing the stake by 2 per cent to 9 per cent in a span of 12 to 18 months. It said that a promoter recently acquired a staggering 11 lakh shares through open market transactions. 

Apart from the bonus, the board also declared to distribute a 1 per cent dividend. "The board has declared an Interim Dividend @ 0.01% i.e., 1 paisa per Equity Share of face value of Re 1 each for the Financial Year 2022‐23 for the Financial Year 2023-2024."

The record date for the purpose of payment of Interim Dividend is also November 17.

Based out of Delhi, IFL Enterprises is a fast-growing operator in the paper industry. Last month, it secured an export order valued at Rs 73 crore in addition to a previous order of Rs 192 crore. IFL Enterprises shares are listed on the BSE.