6:1 Bonus Issue: Audroc shares tumble after stock turns ex-bonus following fresh share allotment

Bonus Issue: Shares of Audroc Ltd fell sharply on Monday after the company’s 6:1 bonus issue came into effect and the stock started trading on an ex-bonus basis.

The steep decline in the share price was mainly because of the standard price adjustment that happens after bonus shares are issued. Market participants said the fall did not reflect any major change in the company’s business or financial position.

Board clears allotment of bonus shares

In a filing submitted to the BSE, the company said its board approved the allotment of 15 lakh bonus equity shares at a meeting held on May 11, 2026.

The bonus issue had already been approved by shareholders at the company’s 32nd Annual General Meeting held on May 4.

As part of the approved plan, shareholders received six bonus equity shares of Re 1 each for every one fully paid-up equity share held on the record date of May 8, 2026.

The company also stated that promoters and promoter group entities were not included in the bonus allotment.

Paid-up capital increases

After the allotment, Audroc’s paid-up equity capital rose from Rs 50 lakh to Rs 65 lakh. The total number of equity shares increased from 50 lakh shares to 65 lakh shares of Re 1 each.

Bonus issues increase the number of shares available in the market while reducing the stock price proportionately. Companies usually use such corporate actions to improve liquidity and make shares more affordable for retail investors.

Stock falls 85% after Ex-bonus adjustment

Following the adjustment for the bonus issue, Audroc shares closed at Rs 3.45 , down nearly 85 per cent on Monday.

The sharp drop appeared significant, but analysts noted that such corrections are normal after bonus shares are credited to shareholders. Since investors receive additional shares, the stock price adjusts accordingly to reflect the larger equity base.
Because of this, the company’s overall market value does not change immediately after the bonus issue.

Investors watch liquidity and volumes

Market participants generally keep an eye on trading activity after bonus issues because the increase in the number of tradable shares often leads to higher liquidity and stronger retail participation.

Stocks with lower prices after bonus adjustments sometimes attract more investor interest due to improved affordability.

About Audroc

Audroc Ltd, earlier known as Alka India Ltd, is listed on the BSE under the symbol ALKA. The company said the bonus issue was part of its capital restructuring exercise aimed at rewarding eligible shareholders.

The completion of the 6:1 bonus allotment marks a major corporate action for the company this financial year. While the stock price corrected sharply after turning ex-bonus, the movement was largely technical and linked to the adjustment process following the issue of additional shares.