Godfrey Phillips Shares: The shares of Godfrey Philips India, a cigarette -making company, saw a huge decline of up to 67 per cent on several trading apps today. Due to this, many investors were shocked. However, there is nothing to panic. This decline is actually due to the adjustment of the bonus share issue and not due to any business crisis.
Godfrey Philips India announced the issue of bonus shares on 4 August 2025 in a ratio of 2: 1. That is, the shareholders will get two new bonuses on every stock with them. The record date for this was set today i.e. 16 September 2025. Due to this, the share price of the company was technically adjusted today.
The shares of Godfrey Philips India closed at Rs 10,227.10 on Monday and opened at Rs 3504.95 on Tuesday after the adjustment of 2: 1 bonus issue. However, on many brokerage apps, showing a new price compared to the old price caused the illusion of a decline of 65 to 67%.
Bounce in shares
After the adjustment of the bonus share, the shares of Godfrey Philips saw a jump of about 8 percent and its price rose to Rs 3675. This increased the market cap of the company to cross to about Rs 55,000 crore. In just 2025, the stock has climbed more than 100% so far. At the same time, in the last 6 months, this stock has gone up 65%.
Why is bonus share?
When a company gives new shares to its old shareholders for free, it is called a bonus share. These share company releases from its free reserves and surplus. That is, these shares are distributed with the additional profits or savings that the company has.
Suppose you have 10 shares of a company, and the company announced 2: 1 bonus share. This means that you will get 2 new shares on every 1 old stock. So now you will have 10 old and 20 new, ie 30 shares. However, the total value of shares will remain the same. That is, if the share price is 30 rupees, then now its price will be adjusted automatically and 20 rupees.
Who are promoters?
Promoters hold 72.58% in Godfrey Philips India and public investors have 27.42% stake. Businessman and former IPL chairman, Lalit Modi has been the executive director of this company. His son Ruchir Lalit Modi and mother Bina Modi are also part of the promoter group. Lalit Modi is also the chairman of Modi Enterprises.
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