Vipul Organics Limited Board recommends bonus issue of shares in the ratio of 1:4

Vipul Organics Limited on Monday announced that its Board has recommended a Bonus issue of the equity shares in the ratio of 1:4 for its shareholders and ESOSs for its employees in its 50th year of operations, subject to the Company's shareholders' approval.

The company proposes to issue 1 new fully paid-up equity share for every 4 fully paid-up equity shares held. The record date for the bonus issue is set on April 9, 2022.

Vipul Organics in a regulatory filing at BSE, said, "Vipul Organics Board has recommended the issue of Bonus Equity Shares in the proportion of 1:4, i.e., one new fully paid-up Equity Share of Rs 10 (Rupees Ten only) each for every 4 (Four) fully paid-up Equity Shares of Rs 10/- (Rupees Ten only) each held by the eligible members of the Company, subject to the shareholders' approval. A total of 25,62,375 new equity shares will be issued."

Commenting on this occasion, Mr. Vipul Shah, Managing Director, Vipul Organics Limited said "over the past five decades, the Company has grown to become one of the largest manufacturers of Pigment and Dyes in India. This was made possible due to the unequivocal support of all its shareholders." He added that the Company has always believed that Employees are its backbone and instrumental in it becoming strong and prosperous. The issue of Bonus Equity shares and ESOSs is a token of appreciation for the continued support of its shareholders and employees respectively.

The Vipul Organics' Board also approved and recommended Vipul Organics Limited - Employee Stock Options Scheme 2022 ("VOL - ESOS 2022") and issuance of up to 2,00,000 options to the eligible employees of the Company, subject to the shareholders' approval.

The Board also allotted 3,34,000 Equity Shares at an issue price Rs 111 each (including premium of Rs 101 per share) upon conversion of 3,34,000 Warrants issued on preferential basis, as approved by the members of the Company in their Extra-Ordinary General Meeting held on January 30, 2021, to the promoter and promoter group of the Company.

Upon conversion of the Warrants, the promoters' stake has increased from 65.08% to 66.22%. After the above allotment, the paid-up share capital of the Company stands increased to Rs 10,24,95,000 divided into 1,02,49,500 Equity Shares of Rs 10 each.

Vipul Organics Limited is a leading Specialty Chemicals company in the Pigments and Dyes segment. Today, it is amongst the foremost manufacturers of Pigments, Dyestuff, Lake Colours and Pigment Intermediaries / Fast Salts in the country.

It has 6 manufacturing facilities spread across Maharashtra and has a global footprint in over 50 countries. Vipul Organics ended the financial year 2020-21 with revenues of Rs 120 Crore, marking a robust 28% + growth over the previous financial year.