Chavda Infra Limited Board Approves Capital Hike and 1:1 Bonus Issue Recommendation
Chavda Infra Limited's Board of Directors held a meeting on August 6, 2026, during which several strategic operational decisions were approved. These approvals include a significant increase in Authorized Share Capital and the recommendation of a bonus issue for existing shareholders, subject to further shareholder approval.The Board considered and approved an amendment to Clause V of the Memorandum of Association, proposing to raise the Company's Authorized Capital from Rs. 35,00,00,000 to Rs. 70,00,00,000. This increase in authorized capital is intended to facilitate future fundraising through the issuance of equity shares.
In a related move, the Board recommended a bonus issue to shareholders at a ratio of 1:1. Under this proposal, one new bonus Equity Share of Rs. 10/- each will be issued for every one existing fully paid up Equity Share of Rs. 10/- each. The proposed structure following the increase in authorized capital would stipulate that the Authorized Share Capital is Rs. 70,00,00,000, divided into 7,00,00,000 Equity Shares of Rs. 10/-(Rupees Ten Only) each.
In terms of financial strategy, the Board reviewed the proposal for dividend declaration and decided instead to retain profits. This strategic decision aims to strengthen the Company's financial position and reserves, thereby enhancing financial flexibility to support future business growth, expansion opportunities, and long-term value creation for all stakeholders.
Bonus Issue Financial Details
The details provided for the bonus issue indicate that the issuance of 3,26,56,000 equity shares at Rs. 10/- each is proposed. The funding for this bonus share issue will be drawn from the Shares Premium Reserve, Free Reserves, and Retained Earnings available as of March 31, 2026.The financial transition pertaining to the pre-bonus stage and the projected post-bonus structure is detailed below:
| Financial Metric | Pre-Bonus Status | Post-Bonus Projection |
|---|---|---|
| Paid Up Share Capital Amount | Rs. 32,65,60,000/- | Rs. 65,31,20,000/- |
| Total Equity Shares (Rs. 10/- each) | 3,26,56,000 | 6,53,12,000 |
| Required Reserves for Bonus Issue | Rs. 32,65,60,000/- | N/A |
The Company has available Shares Premium Reserve, Free Reserves, and Retained Earnings amounting to Rs. 18,783.84 Lakhs as of March 31, 2026, which have been audited. It is estimated that the bonus shares will be credited or dispatched within 60 days from the date of Board Approval.
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