If you invest in the stock market, this update is important for you. Iris Clothings Limited, a company that manufactures kids’ apparel, has announced a 1:1 bonus share issue. This means for every 1 share you hold, you will receive 1 additional share for free.
Today (3 July 2025) is the last day to buy the stock if you want to be eligible, because the record date is 4 July 2025.
Let’s understand the business, financials, and what this bonus means for investors.
What Does Iris Clothings Do?
Iris Clothings Limited, established in 1956, manufactures comfortable and stylish clothing for children.
Its main brand DoReMe is sold across:
- 26 States in India
- Through 186+ distributors
Key Capacity & Facilities
- Production Capacity: 34,000 pieces per day
- Manufacturing Footprint: 8 factories + 3 dispatch centers
In simple words: This company produces affordable kidswear — a category where demand remains consistent year-round.
What Is a Bonus Share?
A bonus share means the company rewards its existing shareholders by giving extra shares for free, from its reserves.
Bonus Ratio: 1:1
- If you own 100 shares, you will receive 100 more shares.
- The new bonus shares will have a face value of ₹2 each.
- Record Date: 4 July 2025
What Impact Does a Bonus Issue Have?
- Short-Term: The share price may fluctuate due to profit booking or increased trading.
- Long-Term: If the company’s business remains strong, shareholders can benefit from higher liquidity and compounding returns.
Financial Performance
| Metric | Q4 FY24 | Q4 FY25 | Change |
|---|---|---|---|
| Revenue | ₹42.12 Cr | ₹40.20 Cr | -4.56% |
| Net Profit | ₹3.49 Cr | ₹4.48 Cr | +28.37% |
Key Insights
- Revenue slightly decreased, but profit increased, showing strong cost control and efficiency.
- 5-Year CAGR:
- Revenue: 19.47%
- Profit: 26.58% → strong long-term growth
- Debt-to-Equity: 0.61x → Financially stable
Stock Performance
- Current Price: ₹66.94 (up 1.18% from previous close)
- Market Cap: ₹637 crore (Small-cap stock)
Technical View
- Short-term traders are buying today to qualify for the bonus.
- Long-term investors should evaluate fundamentals and stability.
Conclusion
- To Receive Bonus Shares: Today is the last day — If you want eligibility, you must buy and hold the shares before the record date (4 July).
- For Long-Term Investors: The company has a stable business model and growth potential.
- Risk: As a small-cap stock, it may show high volatility in the short term.
This article is for informational purposes only. Please consult your financial advisor before investing.
