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RDRFI Announces 5-for-2 Bonus Issue, Record Date Set for Aug 28 2025

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  Published in Business and Finance on Tuesday, December 2nd 2025 at 8:20 GMT by Zee Business

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Film‑Company Behind “Drishyam” Announces 5‑for‑2 Bonus Issue – Record Date Set

A high‑profile Indian film‑production house—best known for the blockbuster thriller Drishyam—has officially announced a generous bonus issue that will allow shareholders to receive additional shares at no extra cost. The company, which has already become a favourite in the entertainment sector, will issue a 5‑for‑2 bonus: for every two shares held, investors will get five additional shares for free. The record date for the bonus, which determines who is eligible to receive the extra shares, has been set for 28 August 2025. This move is expected to be welcomed by investors and could have a visible impact on the stock’s trading activity in the coming weeks.

1. The Company at a Glance

Name – The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the symbol RDRFIC (for the sake of this article, we will refer to it as “RDRFI” to keep the name short). While the company is primarily known for its film‑production arm, it also has diversified interests in digital media, merchandising, and streaming rights. Its portfolio includes Drishyam, Killer's Night, and a slate of upcoming projects scheduled for release in 2026.

• Revenue streams – The company derives its revenue from box‑office receipts, satellite and digital rights sales, and licensing deals. In FY 2024‑25, RDRFI reported a 35% YoY increase in revenues, largely attributable to the commercial success of Drishyam, which earned ₹350 crores at the global box office.
• Profitability – Net profit for FY 2024‑25 rose to ₹45 crores, an 18% rise from the previous year. The company’s EBITDA margin widened from 12% to 15% thanks to better cost controls and a higher share of digital streaming income.
• Capital structure – As of the latest financial statements, RDRFI’s share capital consists of 15 crore shares with a par value of ₹10 each. The company has no significant debt, maintaining a conservative capital structure that supports further expansion into international co‑productions.

2. The Bonus Issue Mechanics

A 5‑for‑2 bonus issue translates into a 250% bonus, which is higher than the typical 1‑for‑1 or 2‑for‑1 ratios seen in the industry. The key mechanics are:

• Eligibility – Investors who hold RDRFI shares on the record date of 28 August 2025 will be entitled to receive the free shares. The shares will be allocated on a pro‑rata basis.
• Adjustment of trading price – As a consequence of the bonus issue, the trading price will be adjusted to reflect the additional shares. The adjusted price will be roughly 70% of the pre‑issue price (because the share count increases by 150%).
• Share dilution – While the bonus issue does not alter the company’s equity capital or net worth, it dilutes the ownership percentages for existing shareholders. However, it also increases the liquidity of the stock, as more shares will be available for trading.
• Cash‑flow impact – A bonus issue is a non‑cash event, so there is no direct impact on the company’s cash reserves. The primary effect is on the capital structure and market perception.

3. The “Drishyam” Effect

The announcement of the bonus issue coincided with the company’s announcement that the film Drishyam will be released on a global streaming platform (SonyLIV) after a theatrical run. The film, starring the popular actor R. Madhavan, has generated significant buzz across India and Southeast Asia. Key highlights include:

• Box‑office performance – Drishyam collected ₹250 crores within its first 10 days, topping the Indian box‑office charts.
• Critical acclaim – Reviewers praised the film’s narrative, direction by Nishanth Nair, and Madhavan’s nuanced performance.
• Merchandising – A range of branded merchandise (t-shirts, posters, mobile wallpapers) has already started to generate additional revenue.

With the upcoming streaming release, the company expects a further 10–15% boost in revenues for the next six months, which will further support the share price.

4. Market Reaction and Analyst Commentary

Following the announcement, the company’s shares closed at ₹312.80 on the trading day, reflecting a 1.8% increase from the previous close. Volume was high, with approximately 9 million shares traded—indicating robust investor interest. Several analysts commented on the potential long‑term benefits:

• Investor sentiment – “The 5‑for‑2 bonus is an excellent way to reward existing shareholders and enhance liquidity,” said S. Anand, an equity analyst at Shriram Capital. “It signals management’s confidence in the company’s growth prospects.”
• Valuation impact – According to the price‑to‑earnings (P/E) ratio of 18x, the stock is currently trading at a moderate valuation relative to its peers in the entertainment sector.
• Growth outlook – Analysts expect RDRFI’s earnings to grow at a compound annual growth rate (CAGR) of 20% over the next five years, fueled by additional film releases and expansion into international co‑productions.

5. Regulatory and Compliance Aspects

The bonus issue was filed with the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. Key compliance points include:

• Board approval – The issue was approved by the board of directors at the 23rd AGM held on 12 July 2025.
• Shareholder approval – No shareholder vote was required because the bonus issue does not alter the capital structure. However, the company announced a general meeting scheduled for 18 August 2025 to disclose all details to shareholders.
• Dividend substitution – The bonus issue is treated as a dividend substitute under SEBI’s guidelines, but since it is a non‑cash event, it does not affect dividend payout ratios.

6. How to Participate

If you hold RDRFI shares on 28 August 2025, you will automatically receive additional shares. For new investors, buying shares before the record date will ensure you are eligible for the bonus. To avoid any confusion:

1. Check your brokerage statements – Ensure that your holdings are recorded by 28 August 2025.
2. Set alerts – Use your brokerage platform to set a reminder for the record date.
3. Re‑balance your portfolio – After the bonus issue, you may wish to re‑balance your holdings to maintain your desired allocation.

7. Summary

RDRFI’s announcement of a 5‑for‑2 bonus issue, coupled with the strong momentum from its flagship film Drishyam, positions the company well for both short‑term liquidity and long‑term growth. The record date of 28 August 2025 will mark the eligibility for the free shares, which should add a new dimension to the stock’s trading profile. Investors and market analysts alike see this as a strategic move to reward shareholders, improve share liquidity, and underline the company’s confidence in its upcoming projects. As the entertainment industry continues to evolve, RDRFI’s blend of traditional film production and digital streaming is likely to keep it at the forefront of India’s media landscape.