Shares of IndiaMart Intermesh rose more than 2% in afternoon trade after the company informed exchanges that it would consider a proposal for a bonus issue at its board meeting on April 28.

If the board of directors approves, this will be the company’s first bonus issue. The stock was quoted at Rs 5,327 on the NSE at 2:30 pm, up 2.3% from its previous close.

A bonus issue is an offer to the existing shareholders of a company to subscribe for additional shares. The number of shares increases, but the value of the investment remains the same.

On the same day, April 28, IndiaMart Intermesh will also announce its fourth quarter results and declare a dividend.

The stock is currently trading 4.5% below its 52-week high of Rs 5,565. It is up more than 23% so far in 2023 thanks to a strong performance in the third quarter.

For the quarter ended December 2022, the B2B e-commerce company reported a 60.68% rise in its consolidated net profit to Rs 112.8 crore. Consolidated revenue for the quarter rose by 33.65% to Rs 251.4 crore.