Reclassification of Authorized Share Capital and consequent Alteration of Memorandum of Association of the Company.
PAUSHAKLTD · price
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Paushak Ltd's board has approved two corporate actions subject to shareholder approval via postal ballot. First, a stock split where each ₹10 equity share will be subdivided into 2 equity shares of ₹5 each. Second, a bonus issue in the ratio of 3:1, meaning 3 bonus shares for every 1 share held. Together, for every 1 share of ₹10 face value held today, shareholders will eventually hold 8 shares of ₹5 face value. Paid-up equity shares will rise from 30.82 lakh to about 2.47 crore shares. The bonus will be issued out of capital redemption reserve and free reserves, requiring around ₹9.25 crore, while the company had ₹359.64 crore in free reserves as of March 31, 2025. The corporate actions are expected to be completed on or before October 10, 2025.
These actions do not change the company's overall value but increase the number of shares by 8x, which should proportionally reduce the share price and improve liquidity and retail affordability. A 3:1 bonus is a strong positive signal of management confidence backed by healthy reserves.