Kotyark Industries Boosts Capital to ₹200 Cr, Greenlights 10:1 Bonus Share Issue

Kotyark Industries announced on May 14, 2026, that its Board of Directors has approved a substantial increase in the company's authorized share capital. This move will see the capital surge from ₹23 crore to ₹200 crore, providing the company with enhanced financial flexibility for future expansion and strategic initiatives.

Alongside the capital hike, the board recommended a bonus equity share issuance in a 10:1 ratio. This means shareholders would receive ten new shares for every one they currently hold, a move designed to increase the number of outstanding shares and potentially make them more attractive and accessible to a wider investor base.

Both the capital increase and the bonus share proposal are subject to shareholder approval through a postal ballot, along with other necessary statutory and regulatory clearances. Securing these approvals represents a primary risk and could lead to delays or impose conditions.

This proposed action follows a pattern of rewarding shareholders and improving stock liquidity, as Kotyark Industries previously announced a 1:1 bonus share distribution in September 2023.

If approved, shareholders will see their holdings increase tenfold, dramatically boosting the total number of outstanding shares. The company's borrowing or equity-raising capacity will also be significantly enhanced. Post-bonus issue, share prices are expected to adjust downwards to reflect the increased share count.

As of March 31, 2026, the company's Securities Premium Account stood at ₹77.15 crore, with Retained Earnings at ₹71.43 crore. The pre-bonus paid-up share capital was ₹10.28 crore, indicating sufficient reserves to support the proposed bonus issue.

Investors will be closely monitoring the outcome of the postal ballot for shareholder approval. Key next steps include the announcement of a record date for bonus entitlement, receipt of all required statutory and regulatory approvals, and the scheduled credit and dispatch date for bonus shares, anticipated by July 14, 2026. The company's future plans utilizing the increased authorized capital will also be a focal point.