1:1 Bonus Issue Alert! This Rs 600 Crore Small-Cap Engineering Stock Doubles Equity Capital

Mold-Tek Technologies has allotted 2,88,05,118 fully paid-up Bonus equity shares in a 1:1 ratio, doubling its paid-up share capital to Rs 11.52 crore from Rs 5.76 crore.

The engineering services company approved the allotment through a resolution passed by circulation on October 12, 2026. The issue follows the board’s recommendation on August 26 and shareholder approval at the annual general meeting on September 21.

Eligible shareholders received one new equity share of face value Rs 2 for every existing share held on the October 9 record date. The bonus shares were allotted to shareholders whose names appeared in the register of members or beneficial owner records on that date.

Following the allotment, Mold-Tek’s equity share count has risen to 5,76,10,236 shares from 2,88,05,118 shares earlier. The newly allotted shares will rank on an equal basis with existing equity shares and will be eligible for Dividends and other corporate benefits declared after their allotment.

The transaction is a capital-structure measure rather than a fund-raising exercise. A bonus issue increases the number of shares held by investors in proportion to their existing holdings, without changing their relative ownership in the company or bringing additional cash into the business. Investors will also need to interpret future per-share metrics against the expanded equity base.

The announcement comes after a marked improvement in Mold-Tek’s June 2026 quarter. Net sales rose 78.85 per cent year-on-year to Rs 59.54 crore, while profit after Tax increased to Rs 9 crore from Rs 0.68 crore a year earlier. The company reported a profit-after-tax margin of 15.12 per cent for the quarter, compared with 2.05 per cent in the corresponding period last year.

Management has attributed the operational improvement to stronger civil and structural engineering demand, lower exposure to weaker automobile engineering activities, cost rationalisation and productivity initiatives. The company has also been building capabilities in US civil engineering, power transmission and distribution work, and residential engineering through its Beryl platform.

Beryl Engineering, the company’s US subsidiary, was acquired during FY 2025-26 to expand Mold-Tek’s residential design, permit engineering, plan review and inspection capabilities. Management has said the business is still being integrated and that its earnings contribution depends on scaling an India-based design team and improving cross-selling opportunities. This remains an execution factor even as the core civil and structural business has shown stronger momentum.

As of 10:07 a.m. on October 12, 2026, Mold-Tek Technologies shares were trading at Rs 113.50, up 3.28 per cent from the previous close of Rs 109.90. Over the preceding year, the stock had gained 27.49 per cent, compared with a 6.29 per cent decline in the BSE 500, implying an outperformance of about 33.78 percentage points.

The bonus shares will now participate in future dividends and corporate actions on the same basis as the existing equity shares.

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