5:7 Bonus Issue: Agriculture stock set to reward shareholders; ex-date on April 10

5:7 Bonus Issue: R M Drip & Sprinklers Systems Ltd has announced a bonus issue of 5 shares for every 7 shares held, with the record date set for 10th April 2026. Investors looking to be eligible must buy shares by 09th April 2026, as the date is fast approaching.

Key details of the bonus issue

In a stock exchange filing, the company confirmed, “The revised Record Date for determining the entitlement of members to receive the aforesaid Bonus Equity Shares shall be 10th April 2026 (T Day). The deemed date of allotment of the Bonus Equity Shares shall be the next working day following the Record Date, i.e., 13th April 2026.”

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A bonus issue is when a company gives extra shares to its existing shareholders for free. You do not have to pay anything for these shares. The company gives them from its profits or reserves. When you get bonus shares, the total value of your investment does not change.

What will change for shareholders

For example, A 5:7 bonus issue means you get 5 new shares for every 7 shares you own. Suppose you have 14 shares. You divide 14 by 7, which gives 2. You get 5 × 2 = 10 bonus shares. Now you have 14 + 10 = 24 shares. The share price will adjust, so the total value of your investment stays almost the same.

Earlier, the record date was 07th April 2026. The board had approved the issuance of 5 bonus shares for every 7 held, each valued at Re. 1, subject to member approval through postal ballot and receipt of statutory approvals.

The record date is the date on which a company checks its list of shareholders. Only the people who own shares on this date can get benefits like a bonus issue or dividends. If you buy shares after the record date, you will not get these benefits. Companies announce the record date in advance so shareholders know when to own shares to be eligible.

The total number of bonus shares to be issued is 17,84,28,571, funded from retained earnings and free reserves. The company expects the shares to be credited within two months of board approval, likely by 27th April 2026.

Share performance

R M Drip & Sprinklers Systems shares closed at Rs 47.58 on Wednesday, up Rs 0.24, or 0.51 per cent. The stock has a market capitalization of Rs 1,190 crore, a 52-week high of Rs 123.80, and a 52-week low of Rs 35.79. Intraday, shares opened at Rs 49.70 and touched a low of Rs 45.25.

Strong Q3 FY26 results

As per exchange filing, the company reported strong Q3 FY26 results for the quarter ended December 2025. It reported that the revenue rose 55 per cent year-on-year to Rs 74.6 crore and net profit jumped 36.5 per cent to Rs 14.05 crore. R M Drip & Sprinklers Systems recorded its highest quarterly sales, with EBITDA up 51.7 per cent YoY and operating margins improving to 30.2 per cent. Earnings per share rose to Rs 0.56, reflecting robust operational performance and strong profitability momentum.