<h1>Kahan Packaging Ltd Approves Significant Increase in Authorized Capital and 3:1 Bonus Issue</h1>
Kahan Packaging Ltd has made major announcements following its Board Meeting, approving a substantial increase in its authorized share capital and sanctioning a bonus equity issuance. These decisions are set to allow the company greater flexibility while rewarding existing shareholders.
The board meeting approved the increased Authorized Share Capital of the company from ₹5,00,00,000 (Rupees Five Crore) to ₹15,00,00,000 (Rupees Fifteen Crore). This increase is enabled by the creation of an additional 1,00,00,000 Equity Shares of ₹10/- each.
In addition to the capital expansion, the company approved the issuance of Bonus Equity Shares at a ratio of 3:1. This means that three new fully paid-up Equity Shares of ₹10/- each will be issued for every one existing fully paid-up Equity Share held by eligible shareholders on the Record Date, which is yet to be fixed.
The company also approved the draft Postal Ballot Notice related to these matters and authorized the Company Secretary and Compliance Officer to manage the necessary actions, including finalization and dispatch of the notice. To ensure transparency in the process, M/s Zankhana Bhansali & Associates, Practicing Company Secretaries, were appointed as the Scrutinizer for conducting the Postal Ballot via remote e-voting.
Financial Status of Bonus Issue
The issuance of bonus shares is being conducted out of Free Reserves created from profits and Share Premium Account. The total proposed number of securities for this bonus issue is 81,60,000 Equity Shares, each having a face value of ₹10/-.The financial details regarding the share capital before and after the bonus issue are as follows:
| Financial Metric | Pre-Bonus Issue (Shares/Amount) | Post-Bonus Issue (Shares/Amount) |
|---|---|---|
| Equity Shares (Shares) | 27,20,000 | 1,08,80,000 |
| Paid Up Capital (Amount) | ₹2,72,00,000 | ₹10,88,00,000 |
For the implementation of the bonus issue, a requirement of Free Reserves and Share Premium amounting to ₹816.00 Lakhs has been established. As per the latest Audited Balance Sheet dated March 31, 2026, the company holds sufficient backing, with audited Free Reserves totaling ₹448.64 lakhs and Share Premium at ₹381.92 Lakhs.
The bonus shares are estimated to be credited or dispatched within two months from the date of Board approval, scheduled for on or before September 10, 2026.
The meeting was conducted and concluded after commencing at 11:00 AM (IST).
Stock Price Movement
Kahan Packaging Ltd settled on Friday after shares ticked up by 20.00%, closing at a price of ₹52.80. The stock maintained a completely locked trading pattern throughout the session, staying rigidly within its narrow range.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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