Orient Technologies Stock Surges 18% on 1:10 Bonus Share News

Introduction to the Market Move

Shares of Orient Technologies Ltd. experienced a significant rally, climbing as much as 18.46% during intraday trade on Tuesday. The surge to a high of ₹396.45 per share on the BSE was a direct market reaction to the company's announcement that its shareholders have approved a bonus issue of equity shares. This corporate action, the first since the company's listing, signals management's confidence in its financial stability and future growth prospects, rewarding its large base of retail investors.

Details of the Bonus Share Issue

Orient Technologies' board of directors received shareholder approval for a bonus issue in a 1:10 ratio. This means that for every ten equity shares an investor holds on the record date, they will receive one additional bonus share free of cost. The company confirmed that this bonus issue will be facilitated through the capitalization of ₹4.16 crore from its Securities Premium Account. In a press release, the company described the move not just as a capital action but as a reflection of its "strong balance sheet, consistent performance, and prudent capital management approach."

Management's Perspective

Ajay Sawant, the Chairman and Managing Director of Orient Technologies, stated that the approval is a clear endorsement of shareholder confidence in the company's fundamentals and long-term vision. He emphasized that the decision reflects the strength of the balance sheet and consistent execution while the company continues to invest in high-growth areas. "Our focus remains on building a scalable, resilient, and differentiated technology services platform that delivers sustainable value to all stakeholders over the long term," Sawant added. The company has consistently focused on strengthening its financial position while investing in core growth segments like cloud services, cybersecurity, and digital transformation.

Shareholder Structure and Investor Impact

The bonus issue is particularly significant for the company's retail investors. As of the September 2025 quarter, promoters held a 73.24% stake in Orient Technologies. A notable 22.1% stake is held by approximately 82,000 retail shareholders, who form the majority of the public investor base. This bonus issue directly rewards this large group of investors. It is also worth noting that mutual funds currently have no exposure to the stock, making the retail and promoter holdings the dominant forces in its ownership structure.

Stock Performance and Key Metrics

The announcement created significant momentum for the stock. On Tuesday, it opened strong and surged nearly 19%, closing at ₹391.4 per share with a market capitalization of ₹1,629.86 crore. The stock's 52-week high is ₹674, recorded on January 20, 2025, while its 52-week low is ₹294.25, touched on March 18, 2025. Over the last six months, the share price has delivered returns of around 12.2%, although it has declined by over 17% in the past year. The bonus issue has provided a fresh positive catalyst for the stock.

Record Date and Eligibility

While the bonus issue has been approved, Orient Technologies has not yet announced the record date. The record date is crucial as it determines which shareholders are eligible to receive the bonus shares. The company has informed exchanges that the date will be fixed and communicated in the coming days. Investors must own the shares on or before the record date to be entitled to the bonus issue.

Financial Health and Company Profile

Orient Technologies is an established provider of IT infrastructure, cloud, cybersecurity, and digital transformation services with over three decades of industry experience. For the second quarter ending September 2025, the company reported a 22.3% jump in net sales to ₹272.80 crore compared to the same quarter in the previous year. However, its net profit saw a decline of 5.9% to ₹14.17 crore during the same period. Despite the dip in profit, the bonus issue suggests a positive long-term outlook from the management.

Conclusion

The shareholder approval for a 1:10 bonus issue has been met with strong optimism from the market, as evidenced by the sharp rise in Orient Technologies' share price. This move is set to increase the stock's liquidity and reward over 82,000 retail investors. While the company's recent profit figures showed a slight dip, the bonus issue is a strong signal of its underlying financial health and commitment to creating shareholder value. Investors will now be awaiting the announcement of the record date to determine their eligibility for the new shares.