The board of The Murugappa group firm, Coromandel International has approved a plan to issue bonus debentures for investors to mark the company's golden jubilee.

The board has decided to issue bonus debentures in the ratio of 1 debenture of Rs 15 for every equity share held, according to financial reports. The company was trading with volumes of 4,017 shares. The bonus debentures are to be considered as a "deemed dividend" under the Income Tax Act.

"The issue and allotment of the bonus debentures along with the dividend distribution tax will account for approximately Rs 495 crore from the reserves," read the company's filing with the BSE.

The fertilisers maker announced on Tuesday its board's decision to issue one-for-one bonus issue of debentures. It said in a statement that the board has also approved setting up of a new single super phosphate manufacturing plant in the state of Rajasthan. The plant will have 800-tonne-per-day capacity and will also include a 400-tonne-a-day capacity granulator plant.

The company also said in the filing that its consolidated net profit declined by almost 20 per cent to Rs 282.38 crore in the second quarter of the year compared to Rs 352.17 crore in the year-ago period.

The shares of the company fell 2.33 percent on Tuesday to close at 307.65 rupees in Mumbai.