Godfrey Phillips Ltd. has announced that it will hold a board meet on September 20 to consider a bonus issue of shares.

The company is considering issuing bonus shares in the ratio of 2:1, meaning shareholders will be eligible to receive two free shares for every one share held as on the record date.

Record date for the bonus issue, if any, is yet to be disclosed.

This is the first instance since at least the turn of the century that the company is considering a bonus issue of shares.

Back in 2014, Godfrey Phillips has split one equity share having a face value of ₹10 into five shares of face value of ₹2.

Until then, the company has paid dividends regularly to shareholders. It recently paid ₹56 per share to shareholders, after having paid ₹44 per share last year.

Godfrey Phillips is also in focus ahead of its Annual General Meeting (AGM) later today.

In a tell all conversation with CNBC TV18 late last month, Samir Modi had clarified that he was willing to do “whatever it takes” to end the family dispute, including selling the business altogether, as was initially proposed by Lalit Modi.

He also reiterated that his mother, Bina Modi—the current MD of Godfrey Phillips—has no place on the board of the company. He said, “And if my father was here today, I see no reason he would disagree with me for not having my mother as the chairman. Siding with his brother Lalit Modi, he added, “I completely support my brother; I see no reason why my mother should be there.”

CNBC-TV18 had also reported exclusively earlier this week that the company has signed a term sheet for the sale of its retail business.

Shares of Godfrey Phillips have surged to the highest point of the day, currently trading with gains of 8.3% to ₹6,945, post this announcement. The stock has more than tripled in value so far in 2024, having risen 230% already.