Cigarette maker Godfrey Phillips India Ltd on Friday said its board will consider issuing bonus shares to existing shareholders in the ratio of 2:1.

The board will meet on September 20 to consider and recommend to the shareholders for their approval the issue of bonus shares, Godfrey Phillips India said in a regulatory filing.

The bonus shares are proposed to be issued in the ratio of 2:1 — two new fully paid-up equity shares of ₹2 each for every existing fully paid-up equity share of ₹2 each, to the equity shareholders of the company by capitalisation of reserves, it added.

Retail business

Chairperson Bina Modi on Friday defended the company’s decision to close its retail business ‘24Seven’, the brainchild of her estranged son Samir Modi, saying it was done with a view to focus on its core business.

At the annual general meeting of the company held on Friday, the special business of not filling up the vacancy ‘for the time being’ caused by retirement by rotation of Samir Modi was taken up along with the appointment of his sister Charu Modi as an executive director.

Bina Modi told shareholders at the AGM, “This focus on our core business is in consonance with the ‘Theory of Core Competency’ propagated by the late global management guru C.K. Prahalad. This strategy has also led us to the closure of our retail business 24Seven.

“At times we need to bite the bullet in the long-term interest of the company and shareholders.”

PTI