Now Reading: Chavda Infra proposes 1:1 bonus issue, doubles authorised capital
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Chavda Infra proposes 1:1 bonus issue, doubles authorised capital
Chavda Infra proposes 1:1 bonus issue, doubles authorised capital
Chavda Infra’s board has proposed a 1:1 bonus issue, subject to shareholder and regulatory approvals. Eligible investors would receive one fully paid-up Rs 10 share for every existing share. The company plans…
The Story in Brief
Chavda Infra’s board has proposed a 1:1 bonus issue, subject to shareholder and regulatory approvals. Eligible investors would receive one fully paid-up Rs 10 share for every existing share. The company plans to allot 3.26 crore bonus shares and raise authorised share capital to Rs 70 crore from Rs 35 crore.
If approved, paid-up equity capital would rise to about Rs 65.31 crore from Rs 32.66 crore. Chavda Infra said it had Rs 187.84 crore in share premium, free reserves and retained earnings available for capitalisation as of March 31, 2026. The board did not declare a dividend, choosing to retain profits. Shares are trading 36% below their Rs 209 peak, according to LiveMint.
The Indian Opinion
A bonus issue changes the number of shares, not the company’s underlying value, so claims of an automatic windfall are misplaced. Nor does retaining profits prove that expansion will succeed. Investors should focus on project execution, cash flows and whether earnings grow after the share count doubles. The practical test is simple: can Chavda Infra turn retained capital into stronger profits without adding excessive debt?
Source: livemint.com
This story was synthesised by AI from the source linked above.
