Rigid plastic packaging company Mold-Tek Packaging and civil and mechanical engineering firm Mold-Tek Technologies on Friday announced that their respective board of directors will consider a bonus issue of shares for its shareholders, along with dividends during their meeting scheduled for August 26 (Wednesday). In separate exchange filings, the two companies said their respective boards will also decide the date and time of the Annual General Meetings (AGMs), along with the record date for determining shareholders eligible to participate in the meetings.

Investors will actively be awaiting the bonus issue and dividend announcements. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects.

While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio..

The stock has jumped over 20% in the past six months, but fell over 14% in the past one year. It is up 43% in the past five years.

Axis Securities recently released a list of its top midcap picks, naming Mold-Tek Packaging among them. It has a ‘Buy’ call on the stock with a target price of Rs 850 per share.

Mold-Tek Technologies share priceMold-Tek Technologies shares meanwhile jumped into the green briefly following the announcement, before erasing all gains to trade in the red. 15 am on Friday.

The stock has recently seen a sharp surge, jumping 44% in a month.. The stock rose 18% in the past one year and 148% in the past five years.