First-Ever 1:1 Bonus Issue: This Small-Cap Packaging Stock Announces Bonus Shares; Paid-Up Capital to Double

On Wednesday, Indian equity benchmark indices traded lower, with the Nifty 50 index falling 126.80 points, or 0.52 per cent, to 24,207.75. Amid the market movement, Mold-Tek Packaging share price was trading at Rs 708.65, up 0.26 per cent, gaining Rs 1.85 per share. The stock touched an Intraday high of Rs 736 and a low of Rs 700 during the session.

Mold-Tek Packaging Announces 1:1 Bonus Issue

Mold-Tek Packaging has proposed a 1:1 bonus issue of equity shares, meaning eligible shareholders will receive one bonus equity share for every one fully paid-up equity share held as on the record date. The record date will be announced after receiving the required shareholder approval.

This is the company's first-ever bonus issue, based on available historical corporate-action records, which show no earlier bonus issue declared by Mold-Tek Packaging.

The company said the proposed bonus issue is intended to mark an important milestone in its growth journey while also broadening retail investor participation, enhancing liquidity and making the equity shares more accessible to a wider investor base.

Paid-Up Capital to Double

Mold-Tek Packaging currently has a paid-up equity share capital of Rs 16.61 crore. Following the proposed 1:1 bonus issue, the paid-up equity share capital will increase to Rs 33.22 crore.

The total number of equity shares will rise to 6,64,57,828 shares, with each share carrying a face value of Rs 5.

The bonus shares will be issued through capitalisation of the company's reserves. Mold-Tek Packaging had Rs 655 crore of reserves and surplus as of March 31, 2026.

The company has clarified that the proposed bonus issue will not impact its solvency margin or other financial parameters.

Management Commentary

Mr. Lakshmana Rao Janumahanti, Chairman & Managing Director of Mold-Tek Packaging, said the company has evolved from a single SSI unit into a technology-driven packaging enterprise with a strong pan-India presence and an expanding product portfolio.

Commenting on the bonus issue, he said, “We believe that the proposed Bonus Issue it is a fitting way to mark this important milestone and to share the benefits of the Company’s progress with the Members.”

The management also highlighted its focus on creating a stronger and more diversified shareholder base to support the company's future growth.

Leadership Transition Also Proposed

Alongside the bonus issue, the company has proposed the appointment of Janumahanti Rana Pratap, son of Chairman and Managing Director Lakshmana Rao Janumahanti, as Director - Marketing and Strategy.

According to the company, Rana Pratap is an alumnus of IIT Delhi and IIM Lucknow and has been associated with Mold-Tek Packaging for the past 14 years. He has contributed to the company's marketing initiatives and pharmaceutical packaging business.

Share Price and Key Market Data

Mold-Tek Packaging shares were trading at Rs 708.65, up 0.26 per cent on Wednesday. The stock touched an intraday high of Rs 736 and an intraday low of Rs 700.

The stock's 52-week high stands at Rs 870.50, while its 52-week low is Rs 464.90. The company has a market capitalisation of approximately Rs 2,360 crore, with a stock P/E of around 30.96 based on the market data shown.
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About Mold-Tek Packaging

Mold-Tek Packaging Limited is a packaging company with a pan-India presence and an expanding portfolio of products. The company has evolved into a technology-driven packaging enterprise and has been expanding its presence in areas including pharmaceutical packaging, while continuing to focus on innovation, customer-centric solutions and long-term growth. The company said it is approaching four decades of its growth journey.

The proposed bonus issue is subject to the requisite shareholder approval, after which the company will announce the record date for determining shareholder eligibility.

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