Small-Cap Stock, Big Rewards: Board Okays 2:1 Stock Split & 3:2 Bonus Issue; Here’s What It Means For You

The shares of GHV Infra Projects Ltd. fell 2% from the previous close on Friday, August 29, closing at a lower circuit limit of Rs 1425.10 a share. Even though the Board of Directors of GHV Infra Projects Limited (formerly known as Sindu Valley Technologies Limited) authorized the proposal of a 2:1 stock split and a 3:2 bonus issue on Tuesday, August 26, there was still selling pressure in the construction stock. GHV Infra Projects Limited executes EPC/turnkey projects in the building, industrial, and infrastructure sectors. The company has a market cap of Rs 2,054.28 Cr as of August 29.

The Board of Directors, in their meeting held on July 24, 2025 had proposed sub-division/ split of the existing equity shares of the company, such that each equity Share having a face value of Rs. 10/- each fully paid up, be sub-divided/split into such number of equity shares having a face value of Rs. 05 each fully paid-up, subject to the approval of the Members of the company in the General Meeting.

This stock split is aimed at enhancing the liquidity of the company's shares in the market and making them more accessible to retail investors, as per GHV Infra Projects.

Prior to the authorized subdivision, GHV Infra Projects Limited held 1.60 crore equity shares of Rs 10 apiece, with an authorized share capital of Rs 16 crore. This included 1.44 crore equity shares of Rs 10 apiece, or Rs 14.41 crore in issued, paid-up, and subscribed share capital. This arrangement draws attention to the company's current capital structure prior to the 2:1 stock split.

After the subdivision, the authorized share capital of GHV Infra Projects Limited is still Rs 16 crore, but it has been split up into 3.20 crore equity shares, each worth Rs 5 instead of the previous Rs 10 denomination. As a result, the total issued, paid-up, and subscribed share capital is Rs 14.41 crore, which currently consists of 2.88 crore equity shares valued at Rs 5 apiece.

The Board additionally recommended issuing bonus shares to the company's current shareholders at a 3:1 ratio during the July 24 meeting. Approx 4,32,45,000 equity shares of face value of Rs. 05/-each (post-split) would be issued as bonus shares, according to GHV Infra Projects.

The share capital of GHV Infra Projects Limited has increased dramatically after the bonus issue. 2.88 crore equity shares of Rs 5 each made up the pre-bonus paid-up share capital (post-split) of Rs 14.41 crore. The post-bonus paid-up share capital, which consists of 7.20 crore equity shares of Rs 5 apiece, has grown to Rs 36.03 crore following the 3:2 bonus issue.

To carry out the recommended bonus issue, the company has set aside a total of Rs 21.62 crore from its free reserves and securities premium. The paid-up share capital as of the record date will be used to calculate the actual paid-up share capital. A general reserve of Rs 15.65 crore and a securities premium of Rs 12.40 crore are among the available reserves, according to the most recent audited balance statement, which was dated March 31, 2025.

For the above-discussed stock split and bonus shares, GHV Infra Projects has not announced record date yet, but after being approved by the company's Board of Directors on August 26, the bonus shares should be credited within two months to the eligible shareholders.