Chavda Infra Ltd has successfully received shareholder approval through a postal ballot for its comprehensive corporate restructuring, approving a 1:1 bonus share issue and significantly expanding its authorized capital. The board approved increasing the company's authorized share capital to ₹70 crore from ₹35 crore and the shareholders' approval through postal ballot has now been secured for both the proposed bonus issue and capital hike. As per the company's regulatory filing, the bonus issue will involve the allotment of 3.26 crore equity shares of face value ₹10 each, with the company's paid-up equity share capital set to increase from ₹32.66 crore to around ₹65.31 crore. The bonus shares will be issued by capitalizing share premium, free reserves and retained earnings available as of March 31, 2026, with the company having ₹187.84 crore in available funds significantly higher than the ₹32.66 crore required for the bonus issue.
The bonus issue announcement comes after Chavda Infra's stock surged 53% in a month and 71% from its 52-week low, taking the company's market capitalisation above ₹439 crore. The Ahmedabad-based infrastructure and construction company's shares have delivered exceptional returns, gaining around 39% over the last one month and more than 9% in 2026 so far. However, the stock has experienced significant volatility since its market debut in October 2023, listing with a 40% premium over the IPO price of ₹65. Between January and September 2024, the stock witnessed a remarkable 134% gain, reaching a fresh all-time high of ₹209 and crossing the ₹200 mark. The positive market sentiment was reflected across Indian equity benchmark indices, with the Nifty 50 index rising 204.15 points, or 0.83% to 24,587.75.
The company has recently secured a significant project win that reinforces its growth trajectory, receiving a Letter of Acceptance valued at ₹89 crore from ADI Shantigram Abode LLP for the construction of the core and shell of a proposed residential high rise building at Adani Shantigram Township, Ahmedabad. This project is scheduled for completion over the next 24 months, providing substantial revenue visibility and strengthening the company's order book. The bonus shares will rank pari passu with existing equity shares in all respects and will be eligible for all future dividends and corporate actions. As reported by the company, the bonus shares will be issued by capitalizing share premium, free reserves and retained earnings available as of March 31, 2026, with the company expecting to credit or dispatch the bonus shares within 60 days from the date of board approval, subject to necessary approvals. The record date to determine shareholder eligibility will be announced later, with only those shareholders owning shares as of the record date eligible to receive the bonus shares.
The board decided against declaring a dividend, instead choosing to retain profits to strengthen the company's financial position and reserves. This decision aims at enhancing financial flexibility, supporting future business expansion and creating long-term value for shareholders, reflecting the company's strategic focus on growth and sustainability. The approval underscores the company's continued commitment to enhance shareholder value while reflecting confidence in its long-term growth strategy and strong business fundamentals. The company has established a strong presence in the real estate and construction sector in Gujarat, particularly in Ahmedabad and Gandhinagar, adopting a strategic business model focused on both residential and commercial projects with growing emphasis on high-rise buildings.
