5:11 Bonus Issue: IT company set to give away 5 shares for free! Record date announced

5:11 Bonus Issue: Microcap IT and software services company Sylph Technologies Ltd has fixed the record date for its recently approved bonus issue. Sylph Technologies had earlier cleared a bonus share issue in the ratio of 5:11.

The board has also approved a proposal to increase the company’s authorised share capital. This move is aimed at supporting future growth plans and strengthening the capital structure.

5:11 Bonus issue

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In an exchange filing, the company noted that under the approved plan, shareholders will receive 5 new fully paid-up equity shares of face value Rs 1 each for every 11 shares held. The bonus shares will be issued from the Securities Premium account.

A bonus issue is the distribution of additional shares to existing shareholders at no extra cost, proportional to their current holdings. This process converts a company's reserves into share capital, increasing the total number of outstanding shares while maintaining each shareholder's percentage of ownership.

After the issue, the company’s paid-up equity share capital will rise from around 84.77 crore shares to nearly 123.31 crore shares. The company said the bonus issue will reward existing shareholders and improve liquidity in the stock.

Record date announced

The company has set December 17 as the record date for determining investor eligibility for the bonus issue. The credited shares are expected to reflect in shareholders’ demat accounts within two months from the board’s approval date of November 28, 2025.

Stock performance

Sylph Technologies shares were trading at Rs 0.89, up 3.49 per cent, at 3:07 PM on December 12. The stock has remained under pressure in recent years and is down 32 per cent over the past year. However, it has delivered a strong multiyear return, gaining nearly 160 per cent over the past five years. The company’s market capitalisation stands at Rs 74.60 crore. The stock has hit a 52-week high of Rs 1.40 and a 52-week low of Rs 0.69.