Kotyark Industries Board Approves Share Capital Enhancement and 10:1 Bonus Issue
Kotyark Industries Ltd announced key corporate approvals following its Board of Directors meeting held on May 14, 2026. The board considered and recommended increasing the authorized share capital and issuing bonus equity shares in a 10:1 ratio, subject to shareholder approval.The Board Meeting, which took place at the Company's registered office, included discussions regarding the company's capital structure, bonus issuance, and the appointment of a scrutinizer for the postal ballot process.
Capital Structure Changes
The directors proposed a significant increase in the Authorized Share Capital of the Company. Subject to the shareholders' approval, the authorized capital is to be enhanced from the existing Rs.23,00,00,000/- (Rupees Twenty-Three Crore Only) divided into 2,30,00,000 (Two Crore Thirty Lakhs) Equity Shares of Rs.10/- each, to Rs.200,00,00,000/- (Rupees Two Hundred Crore Only) divided into 20,00,00,000 (Twenty Crore) Equity Shares of Rs.10/- each. This alteration also involves changes to Clause V of the Memorandum of Association.Bonus Issue Details
The board also recommended the issuance of Bonus Equity Shares to the shareholders in the ratio of 10:1. This entails the allotment of 10 (Ten) Bonus Equity Shares of Rs.10/each for every 1 (One) existing fully paid-up Equity Share of Rs.10/- each held by the shareholders as on a record date to be determined by the Board.The notice confirmed that the board’s actions regarding the bonus issue are subject to the approval of the shareholders and other applicable statutory and regulatory clearances.
The disclosed details concerning the proposed bonus issue are presented below:
| Particulars | Details |
|---|---|
| Type of Securities Proposed | Equity Shares |
| Type of Issuance | Bonus Issue of Equity Shares |
| Total Number of Securities Proposed | 10,27,91,160 Equity Shares of Rs. 10/- each fully paid up |
| Bonus Ratio | 10:1 (10 equity shares of Rs. 10/- for every 1 existing share of Rs. 10/-) |
| Pre-Bonus Paid-up Share Capital | Rs. 10,27,91,160 (Rupees Ten Crore Twenty-Seven Lakhs Ninety-One Thousand One Hundred Sixty Only) divided into 1,02,79,116 Equity Shares of Rs. 10/- each |
| Post-Bonus Paid-up Share Capital | Rs. 113,07,02,760 (Rupees One Hundred Thirteen Crore Seven Lakhs Two Thousand Seven Hundred Sixty Only) divided into 11,30,70,276 Equity Shares of Rs. 10/- each |
| Free Reserves/Share Premium Required | Rs. 102,79,11,600 |
| Estimated Credit Date | On or before July 14, 2026 (Subject to Shareholder's approval and other necessary approvals) |
Dividend Adjustment
The company noted that, previously, the Board had recommended a dividend of Rs.5/- (Rupees Five Only) per equity share for the financial year ending March 31, 2026, on the pre-bonus paid-up equity share capital. The board confirmed that subsequent to the proposed bonus issue, this dividend payout amount will be proportionately adjusted on the post-bonus paid-up equity share capital, thus keeping the overall dividend amount substantially unchanged.Procedural Approvals
To facilitate these transactions, the Board approved the Postal Ballot Notice and the calendar of events for seeking shareholder approval. Furthermore, the directors approved the appointment of M/s. SCS and Co. LLP, Practicing Company Secretaries, to act as Scrutinizer for conducting the postal ballot through remote e-voting.The Company confirmed that the Board had also approved the appointment of National Securities Depository Limited (NSDL) as the Remote E-Voting Agency for the resolutions to be passed via Postal Ballot Notice.
KOTYARK Stock Price Movement
Shares of Kotyark Industries Limited are rallying to ₹439.05 as of 11:39 AM, gaining 5.35% in live trading. The stock continues its upward momentum, supported by a brisk volume of 74,268 shares traded throughout the session.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.