Godfrey Phillips Shares Jump 9% as Stock Turns Ex-Bonus

Shares of Godfrey Phillips India surged over 9% on September 16 as the Lalit Modi–promoted company traded ex-date for its bonus issue. The tobacco manufacturer had announced the two-for-one bonus on August 4, entitling shareholders to two additional fully paid-up shares for every one held.

The record date to determine eligibility was fixed at September 15, with the company stating that the new shares will be credited or dispatched within two months of the declaration.

Bonus issues, which do not impact a company’s cash flows, are a common way to reward investors, improve stock liquidity and broaden retail participation. They also signal management’s confidence in growth prospects, though earnings per share are adjusted in line with the bonus ratio. Godfrey Phillips will draw upon its free reserves and surplus to issue the additional shares, which carry the same face value as the existing stock.

The surge in share price of Godfrey Philip today adds to what has already been a stellar bull run for the stock. Godfrey Phillips has delivered a staggering 975% return over the past five years, with gains exceeding 1,000% from its pandemic lows. In 2025 alone, the stock has more than doubled, rising over 100%, including a 65% rally in just the past six months.

The strong performance reflects the company’s robust fundamentals. For the quarter ended June, the company reported a 56% year-on-year jump in net profit to ₹356.3 crore, while revenue rose 36.6% to ₹1,486 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) also inched higher to 25.3% to ₹338 crore, although the margin narrowed to 22.7%.