Hardwyn India Announces 2:5 Bonus Share Issue, June 10

Hardwyn India Limited announced a bonus share issue in the 2:5 ratio on June 9, 2026, pending shareholder approval. The hardware and architectural fittings manufacturer will issue approximately 19.54 crore bonus shares by capitalizing ₹19.65 crore from free reserves. The stock rose 0.65% to ₹24.59 on NSE. Shareholders will vote on the proposal at an Extraordinary General Meeting on July 3, 2026.

What the Bonus Issue Means for Shareholders

Under the 2:5 ratio, shareholders receive 2 bonus shares for every 5 shares held at no cost. An investor holding 100 shares will receive 40 additional shares. The company will fund this by capitalizing free reserves and retained earnings of ₹19.65 crore. Bonus shares are fully paid-up equity shares issued from company reserves.

Timeline and Approval Process

The board approved the proposal on June 5, 2026. Shareholders must vote at the EGM on July 3, 2026, with a cutoff date of June 26 for voting eligibility. The record date for determining bonus recipients has not yet been announced. Shares are expected to be credited by August 4, 2026.

Capital Increase and Financial Position

The company also seeks approval to raise authorized share capital from ₹50 crore to ₹70 crore to facilitate the bonus issuance. Hardwyn reported free reserves and retained earnings of ₹19.65 crore as of FY26. The stock has gained 69% over the past year, though it trades at 2.98 times book value with a low 2.85% return on equity over three years.

Market Reception and Stock Performance

The bonus announcement drove positive market reaction, with shares rising over 2% to ₹24.94 immediately after the announcement. As of June 9 at 12:47 PM, Hardwyn India shares traded at ₹24.59 on NSE, up 0.65% from the previous close. The company is almost debt-free with strong financial health.

Final Thoughts

Hardwyn India’s 2:5 bonus issue rewards existing shareholders with free shares, though it does not increase total investment value. Meyka rates the stock B+, suggesting a buy, while the bonus improves liquidity and affordability for new investors.

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