R M Drip and Sprinklers Systems Limited has informed the Exchange that the Board of Directors at its meeting held on February 28, 2026, have considered and approved bonus at the ratio of 5 : 7, i.e 5 Equity Shares for every 7 Equity Shares held.
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The Board of Directors of R M Drip and Sprinklers Systems Limited, at its meeting on 28th February 2026, approved a bonus issue of equity shares in the ratio of 5:7, meaning 5 new fully paid-up equity shares (face value Rs. 1 each) for every 7 existing shares held. A total of 17,84,28,571 bonus shares amounting to Rs. 17.84 crore will be issued, funded entirely from free reserves (retained earnings of Rs. 54.95 crore as per audited financials for FY25). The record date for eligibility has been set as 7th April 2026, and the bonus shares are expected to be credited or dispatched on or before 27th April 2026. The Board also approved an increase in authorised share capital from Rs. 31.5 crore to Rs. 50 crore, and the issuance is subject to shareholder approval via postal ballot.
Eligible shareholders will receive 5 additional shares for every 7 shares they own, expanding the paid-up capital from 24.98 crore shares to 42.82 crore shares. While this rewards existing shareholders with more shares, the share price typically adjusts downward proportionally on the ex-date, so overall holding value remains largely unchanged. The bonus reflects management's confidence in the company's reserves.