Ujaas Energy Limited has informed the Exchange that the Board of Directors at its meeting held on August 26, 2025, have considered and approved bonus at the ratio of 2 : 1, i.e 2 Equity Shares for every 1 Equity Shares held.
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The Board of Directors of Ujaas Energy Limited, at its meeting on August 26, 2025, approved a bonus issue in the ratio of 2:1, i.e., 2 new equity shares of Re. 1 each for every 1 existing share held. This will result in issuance of approximately 2.22 crore new bonus shares, increasing the equity base from 11.11 crore to 13.34 crore shares. The bonus will be funded from share premium and free reserves (Rs. 74.82 crores available as on March 31, 2025), and notably, promoters will not participate. Additionally, the Board approved enabling resolutions for fund raising up to Rs. 500 crores (via FPO/ADR/GDR/QIP/rights/preferential) and borrowings up to Rs. 1,000 crores, along with amendments to MOA/AOA and reappointment of a director, all subject to shareholder approval at the upcoming AGM.
A 2:1 bonus is a generous, shareholder-friendly reward that will increase share count by 200% with a proportional price adjustment, improving liquidity. However, the large enabling resolutions for raising up to Rs. 1,500 crores (equity + debt) signal potential dilution and higher leverage ahead, which investors should watch closely. The exclusion of promoters from the bonus is also a noteworthy signal.