Sheetal Cool Products Limited proposes 5:1 bonus after split

Sheetal Cool Products Limited has proposed a 1:2 share split followed by a 5:1 bonus issue that would turn each existing Rs 10 equity share into 12 Rs 5 shares, subject to approvals. The November 12, 2026 proposal capitalises Rs 52.50 crore and raises authorised capital to Rs 68.5 crore.

What did Sheetal Cool Products approve on November 12, 2026?

Sheetal Cool Products approved a proposal to increase authorised capital, split equity shares and issue bonus shares at its board meeting on November 12, 2026. The proposed authorised share capital would rise from Rs 15 crore, divided into 1.50 crore equity shares of Rs 10 each, to Rs 68.5 crore, divided into 6.85 crore equity shares of Rs 10 each before the share split takes effect.

The board proposed splitting every fully paid equity share of Rs 10 face value into two fully paid equity shares of Rs 5 each. Sheetal Cool Products said the stated rationale is to enhance liquidity in its equity shares, widen the shareholder base and make the shares more affordable for small and retail investors. The action needs member approval and any other required statutory or regulatory approvals.

Sheetal Cool Products also recommended five fully paid Rs 5 bonus shares for every one Rs 5 share held on the record date. It plans to issue 10.50 crore bonus shares by capitalising Rs 52.50 crore from its securities premium account and free reserves. The record date has not been set and will be announced separately under Regulation 42 of the Securities and Exchange Board of India listing regulations.

How will the split and bonus issue change Sheetal Cool Products shareholding?

The two proposed actions would convert one existing Sheetal Cool Products share of Rs 10 face value into 12 shares of Rs 5 face value. The split first changes one share into two shares, and the 5:1 bonus then gives five additional shares for each of those two post-split shares, resulting in six shares per post-split shareholding.

The split would double issued, paid-up and subscribed shares from 1.05 crore to 2.10 crore, while paid-up capital remains Rs 10.50 crore because the face value halves from Rs 10 to Rs 5. The bonus issue would then raise paid-up shares from 2.10 crore to 12.60 crore and paid-up capital from Rs 10.50 crore to Rs 63 crore through capitalisation of reserves and premium.

The 10.50 crore bonus shares will rank pari passu, or equally in all respects, with Sheetal Cool Products' existing equity shares. Eligibility depends on the separately announced record date rather than the November 13, 2026 cut-off date for the postal ballot. The company expects to complete the split and bonus corporate actions on or before January 11, 2027, subject to necessary approvals.

Why is Sheetal Cool Products raising authorised capital to Rs 68.5 crore?

Sheetal Cool Products is proposing an additional Rs 53.5 crore of authorised capital to accommodate the bonus issue and equity shares reserved for adjusted warrant conversions. Following the capital increase and proposed split, authorised capital would represent 13.70 crore equity shares of Rs 5 each, equivalent to Rs 68.5 crore.

The planned post-bonus paid-up capital of Rs 63 crore would be represented by 12.60 crore Rs 5 shares. Sheetal Cool Products also plans to reserve 1.008 crore Rs 5 shares for its outstanding convertible warrants. These two components would produce fully diluted capital of Rs 68.04 crore, within the proposed authorised-capital limit of Rs 68.5 crore.

The company intends to capitalise Rs 52.50 crore from securities premium and free reserves available as of September 30, 2026. It reported approximately Rs 149.83 crore of free reserves and securities premium available for capitalisation at that date. Sheetal Cool Products said the reserve figure was based on limited-reviewed financial results for the half year ended September 30, 2026 and was not audited.

How will Sheetal Cool Products adjust its outstanding warrants?

Each of Sheetal Cool Products' 8.40 lakh outstanding convertible warrants would become exercisable for 12 equity shares of Rs 5 each after the split and bonus issue. The number of warrants remains 8.40 lakh, but shares issuable on conversion would rise from 8.40 lakh before the actions to 16.80 lakh after the split and 1.008 crore after both actions.

The exercise price per equity share would be adjusted from Rs 317.65 before the actions to Rs 158.825 after the split and Rs 26.470833 after the split and bonus issue. Sheetal Cool Products said the adjustment is required under Regulation 166 of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018.

Aggregate consideration payable on exercise would remain Rs 26.6826 crore despite the change in shares per warrant and per-share exercise price. Sheetal Cool Products said all 8.40 lakh warrants are held by persons in the public category. The reservation of 1.008 crore shares for these adjusted conversions is part of the rationale for the proposed authorised-capital increase.

What approvals and dates should Sheetal Cool Products shareholders track?

Sheetal Cool Products will seek member approval for the authorised-capital increase, share split and bonus issue through a postal ballot conducted only by remote e-voting. The board approved the postal-ballot notice for the three proposals and appointed Nayan Pitroda, proprietor of M/s. Pitroda Nayan & Co., as scrutiniser. The postal-ballot cut-off date is Friday, November 13, 2026.

The company has not disclosed the record date for determining entitlement to either the split shares or bonus shares. That future date will determine which members receive the five bonus shares for every one post-split Rs 5 share. The record date is to be intimated separately under Regulation 42 of the listing regulations.

Sheetal Cool Products has given January 11, 2027 as the expected completion date for the split, subject to approvals. Its bonus-share disclosure also states that the shares are expected to be credited or dispatched within two months of the November 12, 2026 board meeting, or on or before January 11, 2027, subject to necessary approvals.

Conclusion

Sheetal Cool Products' proposed package combines a two-for-one split with a five-for-one post-split bonus issue, taking paid-up shares from 1.05 crore before the split to 12.60 crore after the bonus. The Rs 68.5 crore authorised-capital proposal also provides capacity for the Rs 63 crore post-bonus paid-up capital and 1.008 crore shares reserved for warrant conversion.

The next disclosed milestones are the postal-ballot approval process, the separate announcement of the record date and the targeted completion by January 11, 2027. Investors can also watch the final implementation of the warrant adjustment, under which 8.40 lakh public-category warrants would each entitle the holder to 12 Rs 5 shares without changing aggregate conversion consideration.