Shivalik Bimetal Controls proposes bonus issue to triple shares

Shivalik Bimetal Controls Limited has proposed a 2-for-1 bonus issue that would increase paid-up equity shares from 5,76,04,200 to 17,28,12,600 by capitalising Rs 23.04 crore, subject to member approval at its December 16, 2026 extraordinary general meeting.

What bonus issue has Shivalik Bimetal Controls proposed?

Shivalik Bimetal Controls has proposed to issue two fully paid bonus equity shares for every one existing fully paid equity share held on a record date that it will announce separately. Each existing and proposed bonus share has a face value of Rs 2, and the board approved the proposal on November 4, 2026.

The proposal would create 11,52,08,400 new equity shares with an aggregate face value of Rs 23.04 crore. It remains subject to approval by members at the extraordinary general meeting, or EGM, scheduled for December 16, 2026, at 10:30 a.m. through video conferencing or other audio-visual means.

A shareholder holding 100 shares on the eventual bonus record date would receive 200 additional shares under the stated 2:1 ratio, taking that holding to 300 shares. This is an illustration of the announced ratio; the filing did not disclose the record date or identify eligible holders.

The bonus issue is distinct from the interim dividend that the board also declared on November 4, 2026. Shivalik Bimetal Controls declared a dividend of Rs 2 per equity share, or 100% of face value, on 5,76,04,200 existing shares, with November 13, 2026 set as its dividend record date.

How would the bonus issue change Shivalik Bimetal Controls' capital?

Shivalik Bimetal Controls' paid-up equity share count would rise to 17,28,12,600 from 5,76,04,200 if members approve the bonus issue and the company completes the allotment. The increase of 11,52,08,400 shares equals twice the current share count, consistent with the proposed two-for-one entitlement.

Paid-up equity capital would increase to Rs 34.56 crore from Rs 11.52 crore, while the Rs 2 face value per equity share would not change. The additional Rs 23.04 crore of share capital would result from capitalising reserves rather than from a cash subscription by shareholders.

Shivalik Bimetal Controls has also proposed increasing authorised share capital to Rs 40 crore from Rs 15 crore, subject to member approval. The proposed post-bonus paid-up capital of Rs 34.56 crore would be within the proposed Rs 40 crore authorised limit but above the existing Rs 15 crore limit.

The authorised-capital proposal requires an alteration to Clause 5 of the Memorandum of Association, which sets out the company’s authorised capital. The bonus issue and the Clause 5 alteration are both included in the resolutions planned for the December 16, 2026 EGM.

How will Shivalik Bimetal Controls fund the bonus shares?

Shivalik Bimetal Controls will fund the proposed bonus issue by capitalising Rs 23.04 crore from retained earnings, described in the disclosure as free reserves. The company said the amount to be capitalised must not exceed Rs 23.04 crore.

The filing states that aggregate free reserves and securities premium available for capitalisation were Rs 23.04 crore as of March 31, 2026. Therefore, the disclosed amount required for the bonus issue is equal to the disclosed aggregate balance available on that date.

The reserve and securities-premium figure is based on audited standalone financial statements for the year ended March 31, 2026. Although the disclosure refers to aggregate free reserves and securities premium, it specifically states that the proposed bonus equity shares will be issued out of retained earnings, or free reserves.

The announcement does not specify a cash outlay for the issue, because the stated mechanism is the conversion of reserves into paid-up share capital. It does specify 11,52,08,400 new shares of Rs 2 each and a maximum capitalisation amount of Rs 23.04 crore.

What do Shivalik Bimetal Controls' latest results show?

Shivalik Bimetal Controls reported standalone revenue from operations of Rs 144.91 crore for the quarter ended September 30, 2026, compared with Rs 118.42 crore in the quarter ended September 30, 2025. Standalone net profit increased to Rs 29.81 crore from Rs 21.17 crore over the same comparison.

Profit before tax for the September 2026 quarter was Rs 40.53 crore, compared with Rs 28.31 crore a year earlier. The September quarter also improved from the immediately preceding June 2026 quarter, when revenue from operations was Rs 131.81 crore and net profit was Rs 26.51 crore.

For the six months ended September 30, 2026, standalone revenue from operations was Rs 276.72 crore, against Rs 235.12 crore in the year-earlier period. Net profit for the six-month period was Rs 56.32 crore, compared with Rs 42.14 crore in the six months ended September 30, 2025.

Basic and diluted earnings per share for the quarter ended September 30, 2026 were Rs 4.98, compared with Rs 3.63 a year earlier. The company stated that the earnings-per-share figures for quarters and six-month periods were not annualised.

When will Shivalik Bimetal Controls decide and complete the issue?

Shivalik Bimetal Controls will seek member approval at the December 16, 2026 EGM, while the company estimates that bonus shares would be credited or dispatched on or before January 2, 2027. That estimate is within two months of the board’s November 4, 2026 approval.

The company set December 9, 2026 as the cut-off date for determining voting rights for EGM resolutions. Electronic voting through National Securities Depository Limited will open at 9:00 a.m. Indian Standard Time on December 13, 2026 and close at 5:00 p.m. on December 15, 2026.

The company has not announced the bonus-share record date, which will determine entitlement under the 2:1 ratio. The November 13, 2026 record date applies only to the interim dividend, which Shivalik Bimetal Controls said would be paid or dispatched on or before December 3, 2026.

Separately, Shivalik Bimetal Controls said a selected chief financial officer candidate is expected to assume office from January 2027. Until then, Whole-time Director Sumer Ghumman has been entrusted with additional chief financial officer responsibilities with immediate effect, while Company Secretary Aarti Sahni’s resignation takes effect on December 7, 2026.

Conclusion

The proposed 2-for-1 bonus issue would add 11,52,08,400 equity shares, take paid-up capital to Rs 34.56 crore and increase the paid-up share count to 17,28,12,600. Its Rs 23.04 crore capitalisation amount matches the aggregate free reserves and securities premium disclosed as available on March 31, 2026.

The immediate event to watch is the December 16, 2026 EGM, following e-voting from December 13 to December 15. If members approve the resolutions, Shivalik Bimetal Controls must announce the separate bonus record date, while its disclosed estimated deadline for credit or dispatch is January 2, 2027.