This Multibagger Small Cap Company Announces Formation of New Subsidiary and Bonus Issue

Kapston Services Limited has released an official communication dated January 23, 2026, announcing two significant board decisions aimed at expanding its strategic footprint and enhancing shareholder value.

The announcement was made following a duly convened Board Meeting held in Hyderabad, wherein the Board considered, approved, and took on record key corporate matters, subject to applicable regulatory and statutory approvals.

Formation of 100 per cent Wholly Owned Subsidiary – Kapston Home Services Private Limited

As part of its long-term growth, diversification, and value-creation roadmap, Kapston Services Limited has approved the incorporation of a new entity named Kapston Home Services Private Limited, which will operate as a 100 per cent wholly owned subsidiary.

This strategic move marks Kapston’s formal entry into the Business-to-Consumer (B2C) home services marketplace, leveraging its strengths in workforce management, compliance-driven operations, service delivery, and technology-enabled execution.

Kapston Home Services aims to transition the company’s capabilities from institutional and corporate environments into residential and small office segments, addressing rising demand for organised and professional home services across urban India.

The proposed digital platform will offer an integrated suite of services, including:

• Cleaning services

• Beauty and SPA services

• EPC services (Electrical, Plumbing and Carpentry)

• A/C repairs

• Painting

• Other home service categories

Each vertical is designed to focus on reliability, safety, transparency, and timely service execution. All services will be delivered through trained, background-verified, and Kapston-certified professionals, ensuring adherence to the same quality, governance, and compliance standards that define the company’s existing B2B operations.

Issue of bonus Shares

The Board has further approved the issuance of Bonus Shares in the ratio of 1:2, meaning 1 new fully paid-up equity share of face value Rs 5 for every 2 existing fully paid-up equity shares of face value Rs 5 held by eligible shareholders as on the Record Date.

The Record Date for determining eligible shareholders will be announced separately after Board consideration. The bonus issuance is subject to approval by shareholders through Postal Ballot along with other statutory and regulatory clearances.

Kapston Services Ltd, incorporated in 2009, is an ISO 9001 and OHSAS 18001:2007 certified manpower solutions provider offering integrated facility management and staffing services. The company delivers a range of solutions including security, housekeeping, electro-mechanical (M&E), landscaping (horticulture) and allied services, while also providing contract staffing to both general and information technology companies.

The stock price of the company has given multibagger returns of 116 per cent from its 52-week low.

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