Godfrey Phillips India surges 8% on ex-bonus date 

Godfrey Phillips India Limited shares jumped 8.12 per cent in morning trade on Monday, gaining ₹277 to reach ₹3,687 after the stock turned ex-bonus. The cigarette manufacturer showed trading volumes surge following the bonus share adjustment.

The stock’s apparent 66 per cent decline from the previous close of ₹10,229 reflects the automatic price adjustment for the 2:1 bonus issue. The shares are trading significantly higher than the adjusted base price of ₹3,410, hitting an intraday high of ₹3,720.

The company’s board had approved the bonus share issue in August, with September 16 set as the record date for shareholder eligibility. Under the 2:1 ratio, existing shareholders will receive two additional shares for every share held, subject to approval at the Annual General Meeting scheduled for September 4, 2025.

Trading activity has been robust with 13.81 lakh shares worth ₹504.05 crore changing hands. The order book shows strong buying interest with 2.83 lakh shares in buy quantity against 78,692 shares in sell quantity.

Bonus issues typically boost investor confidence as they signal strong financials and growth potential. While the total number of shares increases, the market capitalization remains unchanged at approximately ₹57,385 crore. The bonus shares, issued from company reserves, make the stock more affordable and liquid for retail investors. Investors who purchased shares today will not be eligible for the bonus allocation.

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Published on September 16, 2025