Shares of a leading footwear and apparel company surged nearly 2 percent on Friday after declaring an interim dividend of Rs.2 per equity share for FY2024-25. Additionally, the company proposed increasing its authorized share capital from Rs.30.02 crore to Rs.112.01 crore and issuing bonus shares in a 3:1 ratio, offering three new fully paid-up equity shares for every existing share.
Price Movement
During Thursday’s trading session, the share price of RedTape reached an intra-day high of Rs.904.8 per share, rising 1.4 percent from its previous close of Rs.887.25 per share. The stock has retreated since then and closed at Rs.888.10 each.
What happened
Redtape’s Board of Directors has announced an interim dividend of Rs. 2 per equity share for the financial year 2024-25, reflecting a 100 percent dividend on the face value of Rs. 2 per share. The company has also proposed an increase in its authorized share capital, which will rise from Rs.30.02 crore to Rs.112.01 crore.
This increase will be facilitated by the creation of an additional 40.99 crore equity shares, each with a face value of Rs. 2. Furthermore, Redtape has proposed to issue bonus shares to its existing equity shareholders in the ratio of 3:1, which means shareholders will receive three new fully paid-up equity shares for every one existing equity share held.
Products and Offerings
Red Tape offers a diverse footwear collection, including casual sneakers for everyday wear, formal shoes for office or events, and sports shoes designed for comfort and performance. The shoes are made with premium materials and focus on comfort, durability, and style.
In addition to footwear, Red Tape provides a range of trendy, affordable apparel for all family members, catering to various occasions.
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Financial Performance
Turning towards the financials of the company, Redtape Ltd reported Q2 FY25 revenue of Rs.416 crore, increasing 28 percent from Rs.325 crore in the same quarter last year. Profit After Tax (PAT) decreased 11 percent to Rs.25 crore, from Rs.28 crore in the same period.
Company Profile
Red Tape, established in 1996, is a leading Indian brand recognized for its stylish and durable footwear and apparel. The brand offers a wide variety of footwear, including casual sneakers, formal shoes, and sports shoes, with a focus on comfort and quality. In addition to footwear, Red Tape also provides a trendy clothing line for men, women, and children.
Written by – Siddesh S Raskar
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