Kotyark Industries Limited has informed the Exchange that The board of Directors in their meeting held toady recommended bonus issue at ratio of 10:1 which is subject to the approval of Shareholders
KOTYARK · price
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Kotyark Industries' Board has recommended a massive bonus issue in the ratio of 10:1 — meaning shareholders receive 10 new bonus shares for every 1 share held. The company plans to issue approximately 10.28 crore bonus shares of Rs.10 each, funded from free reserves (securities premium of Rs.7,715.14 Lakhs and retained earnings of Rs.7,142.5 Lakhs). Post-bonus, the paid-up share capital will expand from Rs.10.28 crore to Rs.113.07 crore. The Board also approved raising the authorized share capital from Rs.23 crore to Rs.200 crore. Separately, a dividend of Rs.5 per share for FY2026 was confirmed, which will be proportionally adjusted post-bonus to keep the total payout unchanged. All proposals are subject to shareholder approval via postal ballot.
A 10:1 bonus is highly dilutive but signals strong confidence from the company in its financials and future prospects. It increases liquidity and makes the stock more accessible to retail investors. The dividend adjustment ensures no change in total payout, balancing shareholder reward with dilution.