GRM Overseas Shares Surge to New High Following Bonus Issue and Strong Financial Results

GRM Overseas' shares on the BSE reached a new 52-week high of Rs 489 per share after opening at Rs 453.05 on Friday, November 14. At the time of writing, the stock was trading at Rs 468.85, marking a 4.02% increase. This surge followed the company's announcement of its financial results for the quarter ending September 30, 2025, and a bonus issue in a 2:1 ratio.

The company reported a notable rise in its financial performance for the July-September quarter of FY26. Consolidated revenue from operations increased by 15% year-on-year to Rs 362.43 crore. Meanwhile, consolidated net profit saw a significant jump of 61% YoY, reaching Rs 14.76 crore compared to Rs 9.19 crore in the same period last year.

GRM Overseas announced a substantial bonus issue, proposing to distribute approximately 13,81,40,000 bonus equity shares of Rs 2 each. The final number will depend on fully paid-up shares as of the record date. The Board of Directors approved issuing bonus shares in a 2:1 ratio, meaning two fully paid-up equity shares for every existing one held.

"The shareholders of the Company, at their Extra-Ordinary General Meeting held on July 13, 2024, had approved the issuance of Convertible Warrants to Promoters/Promoter Group and Non-Promoters, on a preferential basis by way of private placement. Accordingly, in compliance with Regulation 294 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), the bonus equity shares for the holders of such Warrants will be reserved by the Company. The equity shares so reserved shall be issued to the respective holders at the time of conversion of the Warrants, as the case may be, on the same terms and in the same proportion in which the bonus shares were originally issued," GRM Overseas has further informed stock exchanges.

The bonus issue will be funded entirely from free reserves and/or the share premium account upon shareholder approval. The company's authorized capital will increase from 10 crore shares to 22.5 crore shares. Subscribed and paid-up capital will rise from approximately 6.13 crore shares to about 18.4 crore shares, all valued at Rs 2 per share.

GRM Overseas plans to use Rs 27.62 crore from its retained earnings (free reserves) for this bonus issue. As per their audited balance sheet dated March 31, 2025, they have free reserves amounting to Rs 33,195.75 lakhs, which is sufficient for this capitalization.

Timeline for Bonus Share Distribution

The company has committed to distributing or crediting these bonus shares within two months from the Board's approval date. The process is expected to conclude by January 12, 2025.