Kotyark Industries has approved a massive 10:1 bonus issue, meaning shareholders will receive 10 bonus shares for every 1 share held, subject to shareholder approval. The board also approved raising authorized share capital from ₹23 crore to ₹200 crore to support the enlarged equity base.

Kotyark Industries Bonus Issue Details

The 10:1 bonus ratio will be funded from the company's strong reserves:

• Securities Premium: ₹7,715.14 lakhs
• Retained Earnings: ₹7,142.50 lakhs (as of March 31, 2026)

Key timeline:

• Board approval: May 14, 2026
• Bonus credit expected: By July 14, 2026 (subject to approvals)
• Shareholder approval: Via postal ballot+1

This follows Kotyark's previous 1:1 bonus issue in September 2023, showing the company's pattern of rewarding shareholders.

Why the Capital Increase Matters

The ₹23 crore to ₹200 crore authorized capital hike gives Kotyark significant financial flexibility for:

• Future fundraising without shareholder approvals
• Strategic acquisitions or expansions
• Additional corporate actions

Pre-bonus paid-up capital: ₹10.28 crore (1.03 crore shares of ₹10 each)

What 10:1 Bonus means for Shareholders

Example: If you hold 100 shares today:

• Post-bonus: You'll own 1,100 shares
• Total value: Remains same immediately after price adjustment
• Share price: Adjusts from ₹X to ₹X/11

Benefits:

• Higher liquidity with more shares in circulation
• Lower per-share price attracts retail investors
• Signals financial strength (strong reserves)

Stock market reaction expected

Bonus announcements typically trigger positive sentiment. Kotyark shares may see:

• Short-term momentum ahead of record date
• Increased volumes as investors position
• Price consolidation post-adjustment

Next steps for investors

1. Watch for record date announcement

2. Ensure holdings before ex-bonus date
3. Track postal ballot approval timeline
4. Monitor July 14, 2026 credit date