Bonus issue plan pumps up Liberty Shoes

DALAL STREET SPIKES

Liberty Shoes jumped 20 per cent to Rs 231.80 after the company said on Monday that its board would consider a proposal for bonus issue. The market had measured the announcement in advance as the scrip spurted since its opening.

"The company has a small equity base of Rs 5.07 crore. The book value per share is Rs 123.70. Thus, a liberal bonus issue cannot be ruled out," an analyst said.

The company had undergone a restructuring exercise, split its manufacturing and retail business last year. It is also planning to set a new shoe manufacturing unit in Karnataka as part of its ambitions in south India.

Liberty is one of the major players in the northern part of the country.