4th Bonus Issue: 100 Shares of This Small-Cap Stock Could Become 1,800 Shares Following Proposed 2:1 Bonus Issue; Interim Dividend Also Under Consideration

Shivalik Bimetal Controls is expanding from precision materials into higher-value electrical components and assemblies for electrification, smart-metering and automotive applications. The company has now reported a strong September-quarter performance while also proposing a 2:1 Bonus issue and declaring an interim Dividend.

Shivalik Bimetal Q2FY27 Performance

Consolidated revenue from operations rose 44 per cent YoY to Rs 197.79 crore for the quarter ended September 30, 2026. Profit after Tax (PAT) increased nearly 40 per cent to Rs 34.75 crore, while profit before tax climbed to Rs 46.80 crore from Rs 32.44 crore a year earlier. Revenue was also higher than Rs 182.20 crore in the June quarter, while PAT rose from Rs 33.12 crore on a QoQ basis.

Basic and diluted earnings per share stood at Rs 5.82 for the quarter, against Rs 4.27 in the September 2025 quarter. For the first half of FY27, consolidated revenue reached Rs 379.98 crore and PAT was Rs 67.87 crore, compared with Rs 274.00 crore and Rs 47.63 crore, respectively, in the corresponding prior-year period.

The board declared an interim dividend of Rs 2 per equity share of face value Rs 2 each, involving a payout of Rs 11.52 crore. The record date is November 13, 2026, and payment is due on or before December 3, 2026.

2:1 Bonus Issue: Shivalik Bimetal Controls Bonus Share History

Separately, the board approved a proposed bonus issue of two equity shares for every one fully paid-up share held on the record date, subject to shareholder approval. The proposal would capitalise up to Rs 23.04 crore from retained earnings and increase the paid-up share capital to Rs 34.56 crore from Rs 11.52 crore. Shareholders will consider the proposal and an increase in authorised share capital to Rs 40 crore at an extraordinary general meeting on December 16, 2026.

The two 1:1 bonus issues in 2005 and 2017 doubled the number of shares held by eligible shareholders on each occasion, while the 1:2 bonus issue in 2022 increased their holdings by 50 per cent. The company has now announced its fourth bonus issue in the ratio of 2:1, under which shareholders will receive two additional shares for every one share held on the record date. An investor holding 100 shares before the first bonus issue in 2005 would have seen their holdings increase to 200 shares in 2005, 400 shares in 2017 and 600 shares in 2022.

If the latest 2:1 bonus issue receives shareholder approval, an investor who held 100 shares before the first bonus issue in 2005 would see their total holdings increase to 1,800 shares after the new bonus shares are allotted, assuming no shares were bought or sold during this period. The proposed bonus issue is subject to shareholder approval. Bonus shares increase the number of shares held but do not, by themselves, increase the overall value of an investor's holdings.

Shivalik Bimetal Controls Ltd has issued bonus shares three times since March 2005. The company announced its first bonus issue in a 1:1 ratio in 2005, followed by another 1:1 bonus issue in 2017. Its last bonus issue was in October 2022, when shareholders received one additional share for every two shares held. With the latest announcement of a 2:1 bonus issue, the company is now set for its fourth bonus issue.

As of 2:47 pm on November 4, 2026, Shivalik Bimetal Controls was trading at Rs 1,063.50, up 0.52 per cent from the previous close. The stock was about 8 per cent below its 52-week high of Rs 1,155.40, while its one-year gain of 115.97 per cent contrasts with a 5.73 per cent decline in the BSE 500 over the same period. The company's market capitalisation stood at Rs 6,094.24 crore.

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