Madhusudhan Kela to receive 13,80,000 free shares: Board announced record date for 2:1 bonus share!

GRM Overseas Ltd secured shareholder approval for two major capital adjustments during its meeting on Tuesday, marking a significant shift in its equity structure. The company will more than double its Authorised Share Capital from Rs 20 crore to Rs 45 crore, effectively increasing the total share count to 22.50 crore shares and necessitating an amendment to Clause V of its Memorandum of Association. Following this expansion, the board approved a 2:1 bonus share issue, granting shareholders two additional equity shares for every one share held. With the record date set for Wednesday, December 24, 2025, this move aims to enhance liquidity and reward investors by significantly expanding the company's outstanding share base. The family company of investor Madhusudhan Kela, which holds 6,90,000 shares, is set to receive 13,80,000 free bonus shares.

About the Company

Since its start in 1974 as a rice processing and trading house, GRM Overseas Ltd has evolved into a major consumer staples organisation and one of India's top five rice exporters. The company initially focused on the Middle East and the United Kingdom but has since expanded its market to 42 countries. With three processing units in Haryana and Gujarat, GRM has an annual production capacity of 440,800 MT and a large warehousing facility near the ports of Kandla and Mundra. The company sells its products under brands like "10X," "Himalaya River," and "Tanoush," as well as through private labels, and has recently focused on direct-to-consumer sales through major retailers both in India and abroad, while maintaining strict quality control.

According to Quarterly Results, the net sales increased by 15 per cent to Rs 362.43 crore and net profit increased by 61 per cent to Rs 14.76 crore in Q2FY26 compared to Q2FY25. Looking at its half-yearly results, the net sales increased by 1 per cent to Rs 689.21 crore and net profit increased by 24 per cent to Rs 33.85 crore in H1FY26 compared to H1FY25. In its annual results, the net sales increased by 2.2 per cent to Rs 1,374.2 crore and net profit increased by 1 per cent to Rs 61.24 crore in FY25 compared to FY24.

The shares of the company have an ROE of 16 per cent and an ROCE of 14 per cent with 3 years ROE track record of 20 per cent. The stock gave multibagger returns of 1,365 per cent in 5 years and a whopping 11,650 per cent over a decade.

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