2:5 Bonus Shares Recommended: Record Date To Be Fixed; Buy For The Allotment?

On Wednesday, the shares of small-cap stock Hardwyn India surged over 4% in the morning trade. The market cap of the company reached Rs 1,153 Cr. The consumer durable stock reached a 52-week-high of Rs 51.77 on (15/01/2024) and a 52-week-low of Rs 26.10 on (05/06/2024). Following the announcement of 2:5 bonus shares, the company gained market interest after commencing at Rs 32.30 today and rising to an intraday high of Rs 33.79 compared to the previous closing of Rs 31.83 on the NSE.

Hardwyn India Bonus Shares

"The Memorandum and Articles of Association of the Company and subject to the regulations and guidelines issued by the Securities and Exchange Board of India (SEBI) including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (as amended from time to time) and further subject to such permissions, sanctions and approvals as may be required in this regard, the consent of the shareholders of the Company be and is hereby accorded to capitalize a sum of Rs. 13,95,52,587 /- only (Rupee Thirteen Crore Ninety-Five Lakh Fifty Two Thousand Five Hundred and Eighty-Seven Only) standing to the credit of the Free Reserve and Security Premium, for the purpose of issuance of bonus shares of Rs. 1/- (Rupees One Only) each, credited as fully paid-up equity shares to the holders of existing equity share(s) of the Company whose names appear in the Register of Members maintained by the Company and the List of Beneficial Owners as received from the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) on the Record Date as fixed by the Board for the purpose (which expression shall also include a Committee thereof/CMD), in the proportion of 2 (Two) Bonus equity share of Rs. 1/- each for every 5 (five) existing equity share(s) of Rs. 1/- each held by the Members/Beneficial Owners and that the Bonus Shares so distributed shall, for all purposes, rank paripassu with the existing equity shares and shall be treated as increase in the paid-up share capital of the Company," said the company in a stock exchange filing.

"The Authorized Share Capital of the Company is Rs. 35,10,00,000 and the Paid-up Share Capital is Rs. 34,88,81,467 (comprising 34,88,81,467 equity shares of Rs.1 each). The Free Reserve and Security Premium as per the audited financial statement as on 31st March 2024 is Rs. 352,50,36,379 (INR Three Hundred FiftyTwo Crore Fifty Lakh Thirty-Six Thousand Three Hundred Seventy-Nine only). The Board of Directors at their meeting held on 14th November, 2024 have recommended the issuance of bonus shares in the proportion of 2:5 i.e. 2 (Two) new equity share of Rs. 1 each for every 5 (Five) existing equity share of Rs. 1/- each fully paid up held by the shareholders as on Record Date to be hereafter fixed by the Board / Committee of the Board, by capitalization of a sum of Rs. 13,95,52,587 (Rupees Thirteen Crore Ninety-Five Lakh Fifty-Two Thousand Five Hundred and Eighty-Seven only) from the Reserves and Security Premium. The same is proposed to be applied in full by issuing at par 13,95,52,586.80 (Thirteen Crore Ninety-Five Lakh Fifty-Two Thousand Five Hundred and Eighty-Six and Point Eighty Only) new equity shares of Rs. 1/- each as bonus shares. Consequently, the paid-up equity share capital of the Company would increase from Rs. 34,88,81,467 (INR Thirty-Four Crore Eighty-Eight Lakh Eighty-One Thousand and Four Hundred and Sixty-Seven Only) to Rs. 48,84,34,054 (INR Forty-Eight Crore Eighty-Four Lakh Thirty-Four Thousand and Fifty-Four Only) crore consisting of 48,84,34,054 (Forty-Eight Crore Eighty-Four Lakh Thirty-Four Thousand and Fifty-Four) equity shares of Rs. 1/-each any fraction in No. of Bonus Equity share shall be rounded off to Higher no. of Equity share," Hardwyn India said in a regulatory filing.

Hardwyn India Bonus Shares Allotment

"No letter of allotment shall be issued to the allottees of the new equity bonus shares and the share certificate(s) in respect of the new equity bonus shares shall be issued to shareholders holding shares in physical mode and dispatched to the allottees thereof within the period prescribed or that may be prescribed in this behalf, from time to time; except that the new equity bonus shares will be credited to the demat account of the allottees, who hold the existing equity shares in electronic form. The new equity bonus shares of Rs. 1/- each to be allotted and issued as bonus shares shall be subject to the terms of Memorandum & Articles of Association of the Company and shall rank pari passu in all respects and carry the same rights as the existing fully paid equity shares of the Company and shall be entitled to participate in full in any dividend(s) to be declared after the bonus shares are allotted," the company informed stock exchanges.

Hardwyn India Share Price Target

"Hardyn India stock price is slightly bullish on the Daily charts with strong support at 33. A Daily close above resistance of 35.14 could lead to a target of 40 in the near term," said A R Ramachandran, Independent Research Analyst.

About Hardwyn India

In 2017, Hardwyn India was first established as Garv Industries Limited. Glass fittings and architectural hardware for residential and commercial applications are generated by Hardwyn India Limited. Hardwyn India, which offers solutions for architects, builders, interior designers, and more, has its headquarters in New Delhi. Hardwyn is the go-to solution for residential and commercial projects in a variety of fields. Hardwyn has been the pinnacle of architectural hardware and glass fitting excellence for more than 57 years.

Disclaimer

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