Utssav CZ Gold Jewels has proposed a 1:1 bonus share issue, meaning existing shareholders will receive one extra share for every share held. The company will also increase its authorized share capital to facilitate this change. This corporate action requires shareholder and regulatory approval before it can be finalized.
The board of directors at Utssav CZ Gold Jewels has approved a 1:1 bonus share issue to reward shareholders and potentially improve stock liquidity. Under this proposal, investors will receive one additional equity share for every existing share they hold. The company plans to fund this issuance using its existing free reserves and securities premium account as of March 31, 2026.
This move is primarily an accounting change within the company’s equity structure. It does not alter the fundamental business value or the total value of an investor's holding. The main purpose of such issues is typically to make shares more affordable for retail investors by increasing the number of shares in circulation, which can improve trading liquidity on the stock exchange.
To facilitate this, the company is raising its authorized share capital from ₹25 crore to ₹60 crore. Once the bonus issue is completed, the company’s paid-up equity capital is expected to increase from ₹25 crore to ₹50 crore, resulting in a total share count of nearly 50 million units. This structural adjustment provides the necessary room for the company's expanded capital base.
The proposal is not yet final and still requires the approval of shareholders and relevant statutory authorities. Management has indicated that the process is expected to be completed within 60 days of the board’s approval.
The stock closed at ₹1,014 on the previous trading session on Friday. Investors should now watch for the announcement of the record date, which is the specific cutoff date used by the company to determine which shareholders are eligible to receive the bonus shares. Until the record date is formally declared and the process is cleared by regulators, the bonus shares will not be credited to investor accounts.