Penny Stock Under Rs 20 Announces 1:1 Bonus Issue; Board Approves Capital Expansion to Rs 50 Crore

The Indian equity markets traded on a weak note on Thursday, with the Nifty 50 declining 0.68 per cent to 24,213.50, down 164.60 points. Sectoral indices also remained under pressure, with the Nifty Consumer Durables index declining 1.74 per cent during the session. Despite weakness across benchmark and sectoral indices, stock-specific action remained active. Amid this, Small-Cap stock Mini Diamonds (India) share price was trading at Rs 17.22, down 1.77 per cent during the session, following a key corporate announcement by the company.

Mini Diamonds Corporate Action Update

Mini Diamonds has announced a Bonus issue in the ratio of 1:1, meaning shareholders will receive one bonus share for every one share held, subject to shareholder approval via postal ballot, with the record date to be announced separately. Alongside this, the company has approved an increase in its authorised share capital from Rs 30 crore to Rs 50 crore.

Post the bonus issue, the paid-up share capital is expected to increase to Rs 47.13 crore. The company plans to issue approximately 11.78 crore equity shares as bonus shares, aggregating to around Rs 23.56 crore, which will be issued out of its free reserves and surplus of Rs 39.19 crore as of March 31, 2025, based on audited financial statements.

Timeline for Implementation

Mini Diamonds expects the bonus shares to be credited or dispatched within two months from the date of board approval, i.e., on or before June 21, 2026, subject to necessary approvals. The issuance is contingent upon shareholder approval through postal ballot and completion of regulatory formalities. The record date for determining eligible shareholders will be announced separately.

About Mini Diamonds

Mini Diamonds (India) Ltd operates in the gems and jewellery segment, primarily engaged in the manufacturing and trading of cut and polished diamonds. The company caters to both domestic and export markets, supplying diamonds used across jewellery and industrial applications.

The company focuses on maintaining quality standards, efficient sourcing, and strong client relationships, while leveraging its experience in the diamond value chain. With operations supported by market linkages and industry expertise, Mini Diamonds aims to strengthen its presence in the competitive gems and jewellery sector.

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