Company’s 999-for-1 bonus issue raised shares to 66.21 million

Company executed a 999-for-1 bonus issue on August 30, 2025, allotting 66,143,790 equity shares and taking its share count from 66,210 to 66.21 million. The transaction made each pre-bonus holding 1,000 times larger in share-number terms, while subsequent September 8, 2025 allotments took the disclosed pre-issue total to 68.235 million shares.

What did Company’s 999-for-1 bonus issue do to the share count?

Company’s 999-for-1 bonus issue increased the number of equity shares exactly 1,000-fold, from 66,210 shares to 66,210,000 shares on August 30, 2025. The capital-history table describes the ratio as 999 equity shares for every one equity share held and records 66,143,790 new shares issued to 538 allottees. The disclosed figures reconcile because 66,210 existing shares multiplied by 999 equal 66,143,790 bonus shares.

The August 30, 2025 transaction was a capitalisation event rather than a cash equity allotment. The table marks the issue price and consideration as not applicable for the bonus issue, while each equity share had a face value of Rs 10. Face value is the nominal value assigned to each share, and it remained Rs 10 even as the number of shares increased sharply.

How did Company’s 999-for-1 bonus issue affect ownership proportions?

Company’s 999-for-1 bonus issue preserved the ownership proportion of each holder immediately after the allotment, assuming that every eligible share received the disclosed ratio. A holder of one share before August 30, 2025 received 999 additional shares and therefore held 1,000 shares after the bonus issue. Since the company applied the same multiple across the 66,210-share base, both a holder’s shares and the total share count increased by 1,000 times.

The scale of historic individual holdings must therefore be read on the correct share basis. A holder of 10 shares before the bonus issue would mechanically hold 10,000 shares immediately afterwards, absent any separate purchase, sale or conversion. Comparing an unadjusted pre-bonus holding with the 66.21 million post-bonus total would mix two different denominators and could wrongly suggest an ownership change.

The filing records 538 bonus allottees on August 30, 2025. The later shareholding pattern records 1,126 shareholders across the promoter and promoter group and public categories, based on the 68.235 million-share pre-issue structure. Those counts are reported at different points in time and are not directly comparable, but the 538 figure confirms that the bonus shares were allotted across a broad set of shareholders rather than to one investor.

Why must Company’s historic share prices be adjusted for the bonus issue?

Company’s historic per-share issue prices need a 1,000-for-one adjustment when compared with post-bonus share counts. The capital-history table lists pre-bonus rights, preferential and conversion-related issue-price categories including Rs 5,000, Rs 20,000, Rs 57,000, Rs 1.55 lakh and Rs 5 lakh per equity share. On a mechanical post-bonus basis, dividing each by 1,000 gives Rs 5, Rs 20, Rs 57, Rs 155 and Rs 500 per share, respectively.

The adjustment changes neither the original aggregate amount paid nor the economic ownership proportion attached to a holding. It aligns the number of shares in the comparison, because one pre-August 30, 2025 share became 1,000 shares after the bonus issue. Using a pre-bonus price of Rs 5 lakh against a post-bonus share base of 66.21 million without adjustment would compare amounts expressed on incompatible share bases.

Not every capital-history entry represents cash paid when equity shares were allotted. The filing states that the issue price for equity shares issued on conversion of compulsorily convertible preference shares or Class I compulsorily convertible preference shares was paid when those instruments were originally issued. Accordingly, no consideration was paid at conversion, distinguishing those entries from rights and preferential allotments identified as cash transactions.

What changed after Company completed the bonus issue?

Company’s equity share count rose by a further 2.025 million shares on September 8, 2025, reaching 68.235 million shares before the proposed public issue. The capital-history table records 25,000 equity shares at the Rs 10 issue-price category and 2 million equity shares at the Rs 1.55 lakh issue-price category for Volrado Venture Partners Fund II on that date. The 25,000-share entry is identified as arising from conversion of compulsorily convertible preference shares.

The September 8, 2025 allotments were separate from the common 1,000-fold multiplication effected on August 30, 2025. The 66,143,790 bonus shares represented about 96.9% of the 68.235 million equity shares reported before the public issue, while the September 8 allotments explain the difference between 66.21 million and 68.235 million shares. That distinction matters when tracing changes in the equity base after the bonus issue.

The capital-structure summary reports 68,235,000 issued, subscribed and paid-up equity shares before the public issue, each with a face value of Rs 10. It also reports authorised equity share capital of 100.1 million shares. Authorised share capital is the maximum equity share capital the company is permitted to issue under its constitutional documents; it differs from the number of issued and paid-up shares.

What does Company’s capital structure show before the public issue?

Company had 68.235 million issued, subscribed and paid-up equity shares before the proposed public issue, compared with 66.21 million immediately following the August 30, 2025 bonus issue. The 2.025 million-share increase equalled about 3.1% of the post-bonus share base. Any percentage ownership calculated before the public issue should use 68.235 million shares, rather than the 66,210 pre-bonus shares or the 66.21 million post-bonus total.

The authorised capital structure includes 150,000 preference shares and 8 million compulsorily convertible preference shares, or CCPS, in addition to 100.1 million authorised equity shares. The filing says Company had no outstanding preference shares and no outstanding compulsorily convertible debentures as of the Red Herring Prospectus date. It does not state that the authorised preference or CCPS categories had been cancelled.

The post-issue equity-share count remained blank in the capital-structure table because it was subject to finalisation of the issue price and basis of allotment. The basis of allotment is the method used to determine the final allocation of shares among applicants. As a result, the disclosed 68.235 million shares are the relevant stated equity base before the proposed public issue, rather than a final listed share count.

Conclusion

Company’s 999-for-1 bonus issue explains the apparent jump from 66,210 shares to 66.21 million shares on August 30, 2025. It added 66,143,790 shares with no disclosed cash consideration and applied the same ratio to each existing share, preserving immediate ownership proportions while requiring historic holdings and per-share prices to be read on a 1,000-times adjusted basis.

The next capitalisation item to watch is the final equity-share count after the proposed public issue, because the Red Herring Prospectus left that figure dependent on the final issue price and basis of allotment. The 2.025 million shares allotted on September 8, 2025 should also remain separate from the bonus issue when assessing how Company reached its 68.235 million-share pre-issue base.