The board of VST Industries, maker of the once popular Charminar cigarette that enveloped students, creative people, and intellectuals in a fog of easy camaraderie, has declared a bonus issue in the ratio of 10:1.

This will be the first such issue from the Hyderabad-based cigarette and tobacco company in which well known investor Radhakishan Damani has more than 30 per cent stake.

The bonus proposal was cleared by its board on Friday wherein shareholders will receive 10 shares for every share held.

VST Industries said that its board has fixed August 30, 2024 as the record date to determine the eligibility of shareholders to receive the bonus shares.

The company added that free reserves of ₹154.41 crore will be used to implement the bonus issue.

VST Industries, earlier known as The Vazir Sultan Tobacco Company Ltd, was incorporated on November, 10, 1930.

The Charminar brand was key to the company’s evolution. During the 70s, it captured a strong market share.

While it featured Hyderabad’s well known monument Charminar on its pack, its advertising had actor Jackie Shroff asking “Relax! Have a Charminar!” that resonated with smokers. It reportedly was discontinued in the late 80s after incurring losses.

The company is now the second largest cigarette maker in the country and has brands such as Total, Editions, Charms, Special and Moments in its portfolio.

Damani held 34.66 per cent stake at the end of the quarter June 30, 2024. Ahead of the bonus issue announcement he sold 2.62 lakh shares translating to a 1.7 per cent stake for ₹107 crore in a block deal.

The bonus move saw its shares zooming more than 7 per cent intra-day on the BSE.