Engineered Mechanical Seal Manufacturer Announces 2:10 Bonus Issue of Shares

The Board of Directors of Sealmatic India Limited has announced several key corporate actions, all subject to shareholder approval. The company proposes to increase its Authorised Share Capital up to Rs 12.50 crore, divided into 1.25 crore equity shares of Rs 10 each. Simultaneously, the Board has recommended a bonus issue of equity shares in the ratio of 2:10, meaning two new equity shares for every ten existing shares held.

This bonus issue, which will capitalise up to Rs 1.81 crore from the company's free reserves as of March 31, 2025, will increase the paid-up share capital from Rs 9,05,00,000 to a maximum of Rs 10,86,00,000. Additionally, the Board is seeking approval for a variation in the terms of the objects of a previous issue. The bonus shares are estimated to be credited/dispatched within two months from the date of the Board's approval.

About the Company

Sealmatic India Ltd, established in 2009, designs and manufactures a wide range of sealing solutions for various industries. They are ISO certified and specialise in engineered mechanical seals and sealing support systems used in rotating equipment like pumps, turbines, and mixers. Their product portfolio includes various types of seals like standard cartridge, pusher, split, and gas-lubricated seals. They cater to a diverse clientele across oil & gas, refinery, chemical, pharmaceutical, power, and many other sectors. Their reach extends beyond India, with a presence in over 45 countries worldwide, supplying leading names like KSB, Flowserve, and Xylem.

In FY25, the company reported net sales of Rs 101 crore and net profit of Rs 16 crore. The company has a market cap of over Rs 400 crore and the stock is up over 30 per cent from its 52-week low of Rs 355.50 per share.

Disclaimer: The article is for informational purposes only and not investment advice.