Godfrey Phillips shares rise 8% after 2:1 bonus issue takes effect.

Godfrey Phillips India's shares jumped 8% to Rs 3,694 after adjusting for its 2:1 bonus issue. The stock is now trading ex-bonus, with shareholders receiving two additional shares for every one held, effectively tripling their total shareholding. The bonus issue increased the share count threefold, leading to a proportional drop in the share price, though shareholder value remains unchanged. The stock is trading above all eight of its key Simple Moving Averages, indicating sustained upward strength and positive sentiment among traders and investors.

Godfrey Phillips India Ltd. (GPI) has seen a significant increase in its share price, jumping 8% to Rs 3,694 after adjusting for its 2:1 bonus issue. The stock is currently trading ex-bonus, with shareholders receiving two additional shares for every one held, effectively tripling their total shareholding. This bonus issue, announced on September 12, 2025, has increased the share count threefold, leading to a proportional drop in the share price, though the overall value of holdings remains unchanged.

The bonus issue is set to distribute 10,39,87,840 bonus equity shares of face value Rs 2 each, with a record date of September 16, 2025. To qualify, investors must hold GPI shares in their demat account as of the record date. The bonus shares will be allotted within 15 business days from the record date and will be open to trade from the next session Godfrey Phillips Bonus Issue: Last Day To Buy Shares To Qualify Before Record Date — Check Details^[1].

The 2:1 bonus issue is a strategic move by GPI to increase its shareholder base and potentially boost liquidity. The move comes after the company's share price experienced a decline, possibly due to market sentiments and competitive pressures in the cigarette industry. The increased share count may also attract more retail investors and foreign institutions, as seen in the company's shareholding data Godfrey Phillips Bonus Issue: Last Day To Buy Shares To Qualify Before Record Date — Check Details^[1].

GPI's stock is currently trading above all eight of its key Simple Moving Averages (SMAs), indicating sustained upward strength and positive sentiment among traders and investors. This upward trend is likely driven by the anticipation of the bonus issue and the potential long-term growth prospects of the cigarette giant.

In conclusion, GPI's 2:1 bonus issue has led to a significant share price adjustment, effectively tripling shareholder holdings. While the share price has dropped proportionally, the overall value of holdings remains unchanged. The positive market sentiment surrounding the stock is likely to continue, driven by the anticipation of the bonus issue and the company's long-term growth prospects.