Board of the Company has decided issue Bonus shares in the ratio of 1:1.
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Abate As Industries Ltd's board has approved issuing bonus shares in a 1:1 ratio, meaning shareholders will get one free share for every one share they hold. The company will issue approximately 7.88 crore new equity shares of Rs. 10 each, nearly doubling its paid-up share capital from Rs. 78.80 crore to Rs. 157.60 crore. The bonus will be funded out of the Securities Premium account (Rs. 90.61 crore available) and reserves, based on audited financials as of March 31, 2025. The authorized share capital is being raised from Rs. 95 crore to Rs. 158 crore to accommodate the new shares. Shareholder approval will be sought at the 34th AGM scheduled for July 14, 2025, and bonus shares are expected to be credited by August 16, 2025.
This is a positive development for existing shareholders as it effectively doubles their shareholding without any cost, though the stock price typically adjusts downward proportionately after the ex-bonus date. The signal reflects confidence from the board in the company's reserve position and is generally viewed favorably by retail investors as a reward for holding the stock.