TechNova Solutions Board Greenlights 1:2 Stock Split, 1:1 Bonus Issue, and ₹7.44 Cr SIDBI Loan

TechNova Solutions' board has approved a 1:2 equity share split and a 1:1 bonus share issue, funded by ₹29.00 crore from free reserves. A ₹7.44 crore term loan has also been sanctioned by SIDBI to support business operations. These decisions aim to expand the shareholder base, reward existing investors, and provide capital for growth.

Key Corporate Actions Approved

The board met on March 27, 2026, to greenlight several significant corporate actions:

• 1:2 Equity Share Split: This will change the face value of each share from ₹10 to ₹5, intended to enhance market liquidity and make shares more accessible to a wider range of investors.
• 1:1 Bonus Issue: Existing shareholders will receive one bonus share for every share they currently hold. This will be funded by utilizing ₹29.00 crore from the company's free reserves.
• Authorized Share Capital Increase: The company's authorized share capital will be raised from ₹15 crore to ₹25 crore to accommodate these corporate actions.
• SIDBI Term Loan: A term loan facility of ₹7.44 crore has been sanctioned by the Small Industries Development Bank of India (SIDBI) to bolster operational capacity and support business growth.

Strategic Rationale Behind Moves

These corporate actions signal management's commitment to enhancing shareholder returns and facilitating future expansion. The stock split is designed to broaden investor participation by lowering the per-share price, while the bonus issue serves as a reward for loyal shareholders. The new loan provides crucial financial flexibility for operational needs and growth initiatives.

Impact on Shareholders and Operations

Following these approvals, shareholders can expect:

• An increase in their total share count: two shares for every one held after the split, and one additional bonus share for each share owned.
• Access to ₹7.44 crore in new funding for the company from SIDBI.
• A revised authorized share capital ceiling of ₹25 crore.
• A strengthened financial structure poised for expansion.

Key Approvals and Pending Details

Several critical steps and clarifications are still pending:

• All proposed corporate actions, including the share split, bonus issue, and capital increase, require formal approval from shareholders through a postal ballot.
• The specific record dates for the bonus issue and the final execution of the SIDBI loan agreement are yet to be confirmed.
• The timeline for the completion of the share split has been targeted for May 25, 2026.

Next Steps for Investors

Investors will be closely watching the outcome of the upcoming shareholder voting on the proposed corporate actions. Key milestones to track include the announcement of the bonus issue record date, the finalization of the SIDBI term loan agreement, and the completion of the share split by the targeted date.