Shilchar Technologies Announces 1:2 Bonus Share Issue, Paid-Up Capital Jumps to ₹11.44 Cr; Board Approves Allotment of Over 38 Lakh Bonus Shares

Mumbai, 9 June 2025: In a key move aimed at rewarding shareholders, Shilchar Technologies Ltd (BSE: 531201) has approved a 1:2 bonus issue, allotting 38,13,400 equity shares during its board meeting held today. The decision has been taken in accordance with Regulation 30 of SEBI (LODR) Regulations, 2015.

Following the announcement of the 1:2 bonus issue, Shilchar Technologies’ share price saw a dip of 1.99%, falling by ₹119.75 to trade at ₹5,888.00 as of 11:28 am on June 9. The stock opened at ₹6,088.00 and hit an intraday high of ₹6,125.00 before dropping to a low of ₹5,500.00. Despite the correction, the stock remains near its 52-week high.Top of Form

Bonus Issue Structure

Under this bonus issuance, eligible shareholders will receive one fully paid equity share of ₹10 face value for every two shares held. The entitlement is based on the record date of June 6, 2025.

Capital Structure: Before and After Bonus

The newly allotted shares will carry pari-passu rights, offering the same benefits and entitlements as the existing equity shares.

Regulatory Compliance

This corporate action complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates prompt and transparent disclosure of significant board-level decisions.

Strategic Move to Reward Shareholders and Fuel Liquidity

This bonus issue is seen as a strategic step by the company to enhance liquidity and retail participation in its stock. By lowering the effective share price post-issue, Shilchar is aiming to make its shares more affordable and attractive to a broader investor base — a move that often results in improved market sentiment and increased trading volumes.

Bonus History

Shilchar Technologies Ltd. has given 2 bonuses since Sept. 6, 2023. It previously announced a 1:1 bonus issue with an ex-date of 6 September 2023. This move doubled the company’s outstanding shares, rewarding shareholders with one additional equity share for every share held. It marked a significant step in enhancing liquidity and boosting investor confidence ahead of its continued growth strategy.

What’s Driving the Move?

The bonus issue appears to be driven by several strong fundamentals:

• Steady revenue growth in the transformer business due to increased demand from domestic and overseas markets.
• A recent surge in infrastructure and power sector investments by both public and private players.
• Shilchar’s increasing presence in energy-efficient and export-grade transformer segments, boosting investor confidence.

Additionally, the company’s recent quarterly results reflected a robust uptick in order inflows, indicating strong future cash flows and project visibility, further supporting its decision to expand the equity base without additional debt.

Company Overview

Headquartered in Vadodara, Gujarat, Shilchar Technologies Ltd (ISIN: INE024F01011) is a leading manufacturer of transformers for both industrial and power sector applications. The company caters to clients across domestic and international markets and is renowned for its product quality and strong presence in the energy and infrastructure segments.

 With this bonus issue, Shilchar further strengthens investor value while reaffirming its long-term growth trajectory.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/1f2bb09b-ba6d-4e55-99b9-54076ccbf5a4.pdf

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