Anand Rathi Wealth Limited has announced a 1:1 bonus share issue, a move that will significantly increase the company's equity base and enhance liquidity for investors.
The proposal is subject to shareholder approval and necessary regulatory clearances.
Under this bonus issue, shareholders will receive one fully paid-up equity share of ₹5 each for every one existing share held as of the record date. This effectively means that eligible investors will see their shareholding double without any additional investment.
The company plans to issue approximately 8.30 crore new equity shares, amounting to around ₹41.51 crore. These bonus shares will be issued by capitalising the company's free reserves, including retained earnings, securities premium, and capital redemption reserves as of March 31, 2026.
Following the bonus issue, Anand Rathi Wealth's paid-up share capital will increase from ₹41.51 crore to ₹83.02 crore, with the total number of shares rising from 8.30 crore to 16.60 crore shares. Importantly, the bonus shares will rank pari passu with existing shares, meaning they will carry identical rights, including voting and dividend entitlements.
The company has strong financial backing for this issuance, with free reserves exceeding ₹950 crore as of March 31, 2026, ensuring that the bonus issue is well-supported by internal accruals.
Investors should note that bonus shares are not treated as dividends but rather as a capitalisation of reserves, aimed at improving stock liquidity and making shares more accessible.
As per regulatory timelines, the company expects the bonus shares to be credited to shareholders' demat accounts on or before June 7, 2026, subject to completion of all required formalities.