Utssav CZ Gold Jewels Approves 1:1 Bonus Issue of 2.50 Crore Shares; Shareholder Approval Pending
Join Us
Follow Us
Utssav CZ Gold Jewels approved a 1:1 bonus issue of 2.50 crore shares, subject to shareholder approval and regulatory clearances.
✨ Key Takeaways
Utssav CZ Gold Jewels Ltd has announced a proposed 1:1 Bonus share issue, under which eligible shareholders will receive one additional equity share for every share held. The company’s board of directors approved the proposal at its meeting on October 23, 2026. The issue remains subject to shareholder approval and applicable regulatory clearances.
Each bonus share will have a face value of Rs 10. The company proposes to issue 2,49,98,000 bonus equity shares, increasing the total number of outstanding shares from 2,49,98,000 to 4,99,96,000. If implemented, the paid-up equity share capital will increase from Rs 24.998 crore to Rs 49.996 crore.
The company plans to capitalise its securities premium reserve, free reserves and retained earnings available as of March 31, 2026, to issue the bonus shares. It expects the shares to be credited within 60 days of the board’s approval, subject to the necessary approvals and statutory requirements.
Alongside the bonus issue, the board approved an increase in the company’s authorised share capital from Rs 24.998 crore to Rs 60 crore. The revised authorised capital will comprise six crore equity shares of Rs 10 each. The proposal requires shareholder approval and an amendment to the capital clause of the company’s Memorandum of Association.
A bonus issue increases the number of shares held by existing shareholders without requiring any additional payment. However, it does not, by itself, increase the underlying value of an investment, as the market price generally adjusts to reflect the additional shares.
Utssav CZ Gold Jewels Ltd manufactures, wholesales and exports lightweight cubic zirconia and gold casting jewellery. The company has not yet announced the record date for the proposed bonus issue. It stated that the eligibility date and other relevant details will be communicated after the requisite approvals are obtained.
Disclaimer: The article is for informational purposes only and not investment advice.