The board of directors of Kunal Overseas Ltd will meet on October 5, 1999, to consider a bonus issue. The company has intimated the Bombay Stock Exchange (BSE) about the proposal.
The stock market has reacted favourably to the news of bonus issue with the Kunal Overseas scrip shooting up to a two-year high at Rs 10.50 on the BSE. Activity in the counter also rose considerably yesterday with the traded volume touching 4.68 lakh shares. The management will utilise of reserves and surplus of Rs 26.68 crore for the benefit of its shareholders, Paresh Parekh, chairman of the company said. As against reserves and surplus of Rs 26.68 crore, the company's equity capital has been placed at Rs 10 crore.
According to Parekh, the bonus proposal comes in the wake of improving fundamentals of the company. Speaking to Business Standard, he said, looking at the growth path shown by the company during the current year, the board hopes Kunal Overseas will return back to the dividend list in the current year.
The company, a merchant exporter of garments, cashew nuts and pharma products, has been planning to set up 100 per cent export oriented unit in the field of healthcare with a capital outlay of Rs 17.50 crore.
The diversification into the manufacturing field which is expected to commence by the next financial year is likely to add to the turnover from 2001-02.
Kunal Overseas registered a net profit of Rs 62 lakh on a turnover of 12.85 crore for its first quarter ended June 1999. The company expects good results in Q2 with a substantial growth in profit. ed Agro-Dutch Foods has received a $20 million order from the US-based Kanan Group to export 6,000 tonne of mushrooms a year.">
