Riddhi Steel & Tube Announces 1:2 Bonus Issue of Equity Shares

Ahmedabad, February 17, 2026: Riddhi Steel and Tube Ltd has approved a bonus issue of equity shares in the ratio of 1:2, under which shareholders will receive one fully paid-up equity share of ₹10 for every two shares they currently hold.

The decision was approved by the Board of Directors at its meeting on Thursday, January 1, 2026. In addition to the bonus issue, the Board also sanctioned an increase in the company’s authorised share capital and made the corresponding amendments to Clause V of the Memorandum of Association.

Key Dates and Timeline

Tuesday, February 17, 2026, has been designated as the record date to identify shareholders eligible for the bonus issue, with the ex-bonus date also set for the same day. Shareholders who buy the stock on or after this date will not qualify for the bonus entitlement.

According to the company’s disclosure, the bonus shares are expected to be credited to eligible shareholders’ accounts or dispatched on or before March 1, 2026, subject to the completion of all statutory and shareholder approvals.

Details of the Bonus Issue

The company proposes to issue 41,45,126 equity shares of ₹10 each as bonus shares, aggregating to ₹4,14,51,260. The bonus shares will be issued out of the securities premium account and/or retained earnings, subject to shareholder approval.

Prior to the bonus issue, Riddhi Steel & Tube’s paid-up equity share capital stood at ₹8,29,02,520, comprising 82,90,252 equity shares of ₹10 each. Post the bonus issue, the paid-up share capital is expected to increase to ₹12,43,53,780, comprising 1,24,35,378 equity shares of ₹10 each. The final paid-up capital will depend on the shareholding as on the record date

Riddhi Steel & Tube Financials

For the half-year ended September 30, 2025, Riddhi Steel & Tube reported a total standalone revenue of ₹24,829.69 lakh, primarily driven by revenue from operations of ₹24,679.87 lakh. The company achieved a profit before tax of ₹939.84 lakh, ultimately resulting in a net profit for the period of ₹608.39 lakh after accounting for ₹331.44 lakh in total tax expenses.

The company’s expenditure for the period was dominated by the cost of materials consumed, which stood at ₹21,870.86 lakh out of the total expenses of ₹23,889.85 lakh. On the capital side, the company maintained a paid-up equity share capital of ₹8,290.25 lakh (face value of ₹10 per share), leading to both basic and diluted earnings per share (EPS) of ₹7.34.

Impact on Shareholders

The bonus issue will increase the number of shares held by shareholders in the ratio of 1:2 without any cash outflow. While the total value of each shareholder’s investment remains unchanged immediately after the issue, the increase in outstanding shares will lead to a proportional adjustment in the market price.

Ref:

•  https://www.bseindia.com/xml-data/corpfiling/AttachHis/2cf624b6-b57e-4f2e-9d4d-ea7f590b5d0d.pdf
• https://www.bseindia.com/stock-share-price/riddhi-steel-and-tube-ltd/rstl/540082/financials-results/