RM Drip and Sprinklers Systems approves 5:7 bonus issue subject to shareholder approval and regulatory clearances

R M Drip and Sprinklers Systems Ltd said its Board met on 28th February 2026. The Board confirmed a bonus issue and fixed a record date. After the update, RMDRIP ended at Rs 63.48 on NSE on 2 March 2026. The close was 10.00% lower than Rs 70.53.

The stock opened at Rs 63.48 and stayed locked at the lower circuit. The day’s high and low were both Rs 63.48. This marked the fourth straight losing session for the counter. Over these four sessions, the stock value fell by about 48.15%.

The company said the record date to identify eligible holders is April 7, 2026. Investors holding shares by that date may qualify for the announced bonus allotment. The bonus issue still needs shareholder approval through a Postal Ballot. It also requires the necessary statutory and regulatory clearances.

The Board of Directors "Approved the issuance of bonus equity shares in the ratio of 5:7, i.e., 5 (Five) new fully paid-up Equity Shares of Rs.1/- (Rupee One only) each for every 7 (Seven) existing fully paid-up Equity Shares of Rs.1/- (Rupee One only) each, held by the Members of the Company as on the Record Date (mentioned below), subject to approval of the Members through Postal Ballot and receipt of requisite statutory and regulatory approvals, as applicable," said the company in a regulatory statement.

R M Drip and Sprinklers Systems Ltd said it planned to issue 17,84,28,571 equity shares. Each share has a face value of Re. 1. The total amount involved is Rs. 17,84,28,571. The bonus shares are to be issued from the share premium account or free reserves from profits.

As per audited results for the year ended March 31, 2025, free reserves stood at Rs. 54,95,25,141. The company said Rs. 17,84,28,571 would be capitalised from retained earnings. It also indicated a tentative timeline for credit or dispatch. The company expected completion within two months, by April 27, 2026.

RM Drip and Sprinklers Systems bonus shares impact on share capital

Before the bonus, authorised share capital was Rs. 31.50 crore. It was split into 31,50,00,000 equity shares of Re. 1 each. Issued, subscribed, and paid-up capital stood at Rs. 24.98 crore. That included 24,98,00,000 equity shares of Re. 1 each.

After the bonus, authorised capital is set to rise to Rs. 50 crore. It would then include 50,00,00,000 equity shares of Re. 1 each. Paid-up capital is set to increase to Rs. 42,82,28,571. It would then comprise 42,82,28,571 equity shares of Re. 1 each.

Item	Before bonus	After bonus
Authorised share capital	Rs. 31.50 crore (31,50,00,000 shares of Re. 1)	Rs. 50 crore (50,00,00,000 shares of Re. 1)
Issued, subscribed, paid-up	Rs. 24.98 crore (24,98,00,000 shares of Re. 1)	Rs. 42,82,28,571 (42,82,28,571 shares of Re. 1)
Bonus shares to be issued	—	17,84,28,571 shares (Rs. 17,84,28,571)

RM Drip and Sprinklers Systems bonus shares and RMDRIP target price view

"RM Drip and Sprinklers stock price is bearish and oversold with next support at 41 on the Daily charts. Investors should buy only if Daily close is above resistance of 76 could lead to a target of 97 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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