1:5 Stock Split, 1:2 Bonus Issue: This small-cap stock rallies after the company announces a double reward for shareholders

Bonus Issue, Stock Split News: Shares of Kalind Limited rose nearly 4 per cent on Wednesday after the company announced a combination of two shareholder-friendly corporate actions — a 1:5 stock split and a 1:2 bonus issue.

The stock climbed 3.6 per cent to Rs 94.50 during the session, taking the company's market capitalisation to around Rs 1,157 crore. Investor sentiment was boosted by the prospect of a sharp increase in the number of shares held by existing shareholders once both corporate actions are implemented.

The board of directors approved the stock split and bonus issue at its meeting held on June 3. Both proposals are subject to shareholder approval through a postal ballot, with the company targeting completion on or before August 2, 2026.

Stock split to improve liquidity

Under the approved proposal, each equity share with a face value of Rs 10 will be split into five equity shares with a face value of Rs 2 each.

The company said the move is aimed at improving liquidity in the stock and encouraging broader participation from retail investors by making the share price more affordable.

Following the split, the number of outstanding shares will increase from 12.18 crore shares to 60.94 crore shares, while the paid-up share capital will remain unchanged.

Bonus shares to follow

After the stock split takes effect, Kalind will issue bonus shares in the ratio of 1:2.

This means shareholders will receive one additional share for every two shares held after the split.

The company will issue the bonus shares from its free reserves and securities premium account, which stood at Rs 91.07 crore as of March 31, 2026.

What it means for shareholders

The combined effect of the stock split and bonus issue will significantly increase the number of shares held by investors.

For example, an investor holding 10 shares today will receive 50 shares after the stock split. Following the bonus issue, an additional 25 shares will be credited, taking the total holding to 75 shares.

In other words, every one share currently held will effectively translate into 7.5 shares after both corporate actions are completed, although the overall value of the investment will remain unchanged immediately after the adjustment.

Company background

Surat-based Kalind Limited, formerly known as Arunis Abode, operates in heavy machinery leasing, infrastructure services and real estate activities. The company supplies earth-moving equipment along with operators and fuel for infrastructure and construction projects.

The company has reported strong growth in revenue and profitability in FY26 and remains virtually debt-free, factors that have helped attract investor interest in the stock.

The record date for the stock split and bonus issue will be announced after shareholders approve the proposals.