Shoes and apparel manufacturer RedTape Ltd. announced the issue of bonus shares for its shareholders and also declared a dividend at the end of its board meeting on Thursday, December 26.

The company has declared an interim dividend of ₹2 per share, for which it has fixed January 3, 2025 as the record date.

RedTape will also issue bonus shares in the ratio of 3:1, which means that shareholders will be eligible for three bonus shares for every one share they own as on the record date.

The record date for the bonus issue is yet to be determined.

This is the first instance of the company declaring a bonus issue of shares or even a dividend.

Shares of RedTape had listed on the stock exchanges in August 2023 after its demerger from the parent company Mirza International.

RedTape accounted for nearly 55% of the overall sales of Mirza International, at the time of the demerger announcement in November 2021. The demerger was approved by the NCLT in February 2023.

The Mirza family still owns around 71% stake in RedTape as promoters of the company.

Shares of RedTape are trading 4.6% higher post the announcement at ₹907. The stock has risen 88% so far in 2024. The stock has corrected close to 10% from its recent peak of ₹980.