The board of IndiaMART will consider the issuance of bonus shares at its upcoming meeting on April 28
IndiaMART will join other new-age tech companies like Nykaa and EaseMyTrip, which issued bonus shares last year, if its board approves the proposal
The B2B marketplace will also release its Q4 results on April 28. It posted a profit of INR 113 Cr in Q3 FY23
B2B marketplace IndiaMART InterMESH on Tuesday (April 25) said that its board of directors will consider a proposal for issuance of bonus shares at the upcoming board meeting on April 28.
IndiaMART is also scheduled to release its financial results for the quarter and year ended March 2023 on April 28.
“In continuation to our earlier letter dated April 21, 2023, wherein it was informed that the board meeting of the company is scheduled on Friday, April 28, 2023… we hereby inform that the board of directors of the company will also consider the proposal for issue of bonus shares, subject to the approval of shareholders of the company, in the aforesaid board meeting,” IndiaMART said in an exchange filing today.
For the uninitiated, bonus shares are additional shares issued by a company to its shareholders in proportion to the shares held by them. Bonus shares help improve participation of retail investors by bringing down the price of the shares.
The development comes at a time when a number of new-age tech startups have gone for issuance of bonus shares over the last year or so. In 2022, Nykaa and EaseMyTrip issued bonus shares to their shareholders. However, unlike most of the other listed new-age tech startups, IndiaMART is one of the few companies whose shares are trading higher than their listing and issue price.
IndiaMART’s fundamentals are also strong and the company continues to post significantly better results than other listed new-age tech companies. In Q3 FY23, IndiaMART reported a 61% year-on-year (YoY) jump in its consolidated net profit to INR 113 Cr while its operating revenue grew 31% YoY to INR 251 Cr.
Founded in 1996, by Dinesh Agarwal and Brijesh Agarwal, IndiaMART helps to connect enterprise buyers with suppliers. The company went public in 2019. Recently speaking at Inc42’s The Maker Summit 2023, Dinesh Agarwal reiterated the importance of the profitability objective in the ecommerce business.
While the B2B marketplace’s shares fell around 33% in 2022 amid a global slowdown, the stock is trading 23% higher year to date.
Shares of IndiaMART ended today’s session 2.2% higher at INR 5,320.10 on the BSE.