Silver Touch Shares Set To Explode? 1:5 Stock Split & 1:1 Bonus Issue Announced; Big News For Investors?

Market players have taken notice of Silver Touch Technologies Ltd.'s announcement of a significant set of corporate actions. The firm notified exchanges in a regulatory filing on January 16, 2026, that its Board of Directors had approved a bonus issue, an increase in authorized share capital, and a stock split, subject to shareholder approval.

Silver Touch Technologies Stock Split

The Board of Directors considered and approved "Sub-division of equity shares of the Company, such that 1 (One) equity share having face value of Rs 10/- (Rupees Ten Only) each, fully paid-up, be sub-divided into 5 (Five) equity shares having face value of Rs 2/- (Rupee Two Only) each fully paid-up held by the shareholders of the Company as on the record date, to be determined later," said Silver Touch Technologies in a stock exchange filing.

The authorized share capital under the proposed subdivision will rise from 1.60 crore equity shares with a face value of Rs 10 to 8.00 crore equity shares with a face value of Rs 2. In a similar vein, the number of shares will rise in proportion to the paid-up share capital. The paid-up equity shares will increase from 1,26,81,000 shares with a face value of Rs 10 to 6,34,05,000 shares with a face value of Rs 2.

Subject to receiving the necessary approvals from shareholders and regulatory bodies, the corporate action is anticipated to be finished by March 15, 2026, at the latest.

Silver Touch Technologies Bonus Shares

The Board of Directors considered and approved "Issue of bonus equity shares in the ratio of 1:1 i.e., 1 (One) bonus equity shares of Rs 2/- each for every 1 (one) equity share of Rs 2/- each fully paid-up held by the shareholders of the Company as on the record date, to be determined later," said Silver Touch Technologies in a regulatory filing.

After the share split adjustment, the corporation proposed issuing bonus equity shares as part of its capital restructuring strategy. This proposal calls for the issuance of 6,34,05,000 fully paid-up equity shares with a face value of Rs 2 apiece for eligible shareholders.

Following the bonus issue, the subscribed share capital will rise in proportion to the paid-up share capital, which will climb from 6,34,05,000 equity shares to 12,68,10,000 equity shares. In order to support the scheduled bonus issuance, the authorized share capital would stay at 15,00,00,000 equity shares with a face value of Rs 2 apiece.

The company would capitalize Rs 12.68 crore from its share premium account or free reserves in order to execute the bonus issue. The company has free reserves of Rs 118.12 crore available as of March 31, 2025, according to audited financial reports, which easily satisfies the bonus issue requirement.

Silver Touch Technologies said it will complete bonus share corporate action on or before 15th March, 2026 subject to necessary approvals.

Silver Touch Technologies Target Price

"Silver Touch Tech stock price is bullish & overbought with strong resistance at 1690 on the Daily charts. Investors should be booking profits at current levels as a Daily close below support of 1442 could lead to a target of 1104 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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