Kalind cuts share price to ₹2 and announces a bonus issue
The board has approved a 1:5 stock split and a 1:2 bonus issue, capitalising ₹60.95 crore from reserves. Both moves are pending shareholder approval.
What's new
- Board approved a 1:5 stock split, reducing face value from ₹10 to ₹2 per share.
- Announced a 1:2 bonus issue, capitalising ₹60.95 crore from reserves and securities premium.
- Both actions require shareholder approval and are targeted for completion by August 2026.
Why this matters
For a ₹1,098 crore market-cap company, this is a direct attempt to lower the share price and attract more retail participation. The bonus issue alone requires deploying about 5.5% of the company's market value from its balance sheet, a meaningful commitment of capital.
What we're watching
- The post-announcement share price reaction to see if the market agrees with the liquidity thesis.
- Shareholder approval of the postal ballot, the next procedural hurdle.
- The final share count and adjusted price once both actions are implemented.
The full read
Kalind is simultaneously cutting its share price and expanding its share base. The board has approved a 1:5 stock split, taking the face value from ₹10 to ₹2, alongside a 1:2 bonus issue. The bonus will capitalise ₹60.95 crore from reserves. For a company with a ₹1,098 crore market capitalisation, that bonus commitment is roughly 5.5% of its total value. The combined effect will significantly lower the per-share price and increase the outstanding share count. The stated goal is liquidity. Both moves still require shareholder approval, with a target completion date of August 2026.
Questions answered
- What exactly did Kalind's board approve?
- Two actions: a 1:5 stock split that takes the face value from ₹10 to ₹2, and a bonus issue of one new share for every two held. Both are pending a shareholder postal ballot.
- How is the bonus issue being funded?
- The company will capitalise ₹60.95 crore from its existing free reserves and securities premium to issue the bonus shares.
- What is the expected timeline?
- The company targets completion of both the split and the bonus issue by August 2, 2026, assuming it receives the required shareholder approval via postal ballot.
- Why take these steps now?
- Kalind stated the moves are to enhance liquidity and broaden shareholder participation. For a micro-cap, lower per-share prices can make the stock more accessible to retail investors.