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
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Kotyark Industries board has recommended a bonus issue in the ratio of 10:1, meaning shareholders will receive 10 bonus equity shares for every 1 share held. The bonus shares will be issued from free reserves, specifically from securities premium (Rs.7715.14 Lakhs) and retained earnings (Rs.7142.5 Lakhs). The paid-up capital will increase from Rs.10.28 crore to Rs.113.07 crore after the bonus. The board also approved increasing the authorized share capital from Rs.23 crore to Rs.200 crore. The previously recommended dividend of Rs.5 per share will be adjusted proportionally on post-bonus capital. The bonus is subject to shareholder approval via postal ballot, with shares expected to be dispatched by July 14, 2026.
A 10:1 bonus issue is highly dilutive and signals management confidence in the company's future. While it increases share count significantly, the total dividend payout amount will remain substantially unchanged, which may limit immediate positive impact on shareholder returns.