Bonus Issue Alert! The small company announced a 2:5 bonus issue. Do you own it?
In an exchange filing made public on Friday, Hardwyn India stated that its board of directors on June 5 “considered and approved the issuance of bonus equity shares in the ratio of 2:5 i.e. two fully paid bonus shares of Rs 1 for every five fully paid shares held by shareholders of the company as on the record date capitalizing free reserves/surplus, subject to approval at the special general meeting”.
Along with the bonus issuance, Hardwyn’s Board of Directors approved increasing the company’s authorized share capital from the existing Rs 50 million of par value of Rs 1 to Rs 70 million divided into 70 million shares of face value of Rs 1 each.
Also read: Why is the stock market plummeting today? The extraordinary general meeting of shareholders (EGM), which will decide on the issuance of bonuses, is scheduled for July 3 this year. The company has set a deadline of June 26 to decide who can vote at the EGM.
Hardwyn India Bonus Issue Record Date
As part of the bonus issuance, the company proposed to issue around 19.54 billion new shares for its shareholders using its reserves or retained earnings amounting to Rs 19.65 crore as on end of financial year 2026.
The record date for determining shareholders’ eligibility for the 2:5 bonus issuance has not yet been announced. Hardwyn said he expects the bonus issuance to be sent within two months of board approval, or by Aug. 4.
Bonus issuances consist of free shares distributed from reserves held by the company and are often seen as a sign of strong financial health and growth prospects. The issuance of bonus shares increases the total number of shares outstanding but does not change the company’s market capitalization. However, it improves liquidity and affordability, allowing more investors to add the company’s shares to their portfolios.
Anand Rathi selected Hardwyn India as his pick of the month.
Anand Rathi Investment Services named Hardwyn India as its pick of the month in a report dated June 2, highlighting that the stock is currently trading near the 20 DEMA support. “Also, the DMI indicator is positively aligned and ADX is positioned at 32, reflecting strong trend strength and supporting the possibility of further upward momentum,” he said.
“Therefore, traders may consider accumulating the stock in the Rs 24.50-25.50 area and taking a stop loss at Rs 22.50. On the other hand, if it holds above the mentioned support level, the stock is likely to move towards the Rs 30 target in the near term,” he added. The price target implies an upside potential of around 23% from the stock’s previous closing price of Rs 24.41.
Hardwyn India stock price
Hardwyn India shares were down nearly 1% to trade at Rs 24.21 per share around 11.05 am on Monday. The stock price fell 4% in 5 days and 2% in 1 month. But overall, the company’s stock price is up more than 44% so far in 2026.
Also read: It is one of Nuvama’s top five consumer choice products following fourth-quarter earnings season. What do you own?
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. They do not represent the views of The Economic Times.)
