Hardwyn India, a manufacturer of kitchen, door, glass, wardrobe and sliding hardware solutions, announced a 2:5 bonus share issue following a board meeting held on June 5. According to the exchange filing, the board approved the issuance of 2 bonus equity shares of ₹1 each for every 5 equity shares held by shareholders as on the record date, by capitalization of free reserves and retained earnings. The record date for determining shareholder eligibility has not yet been announced, with the company stating the bonus shares are expected to be credited or dispatched within two months of board approval, likely completing the process by August 4.
The company has scheduled an Extraordinary General Meeting (EGM) on July 3, where shareholders will vote on the bonus issue proposal. June 26 has been fixed as the cut-off date for determining shareholder eligibility to participate in the voting process. As reported by LiveMint, the proposed bonus issue involves issuing nearly 19.54 crore new equity shares to eligible shareholders through capitalization of free reserves and retained earnings, with the company's free reserves and retained earnings standing at ₹19.65 crore at the end of FY26.
The small-cap stock rose over 2% to its day's high of ₹24.94 on BSE on Tuesday, according to LiveMint reports. While the stock is down 3.5% in the last 1 week, it has demonstrated strong long-term performance with 42% gains in 3 months, 44% in 6 months, and 69% in 1 year. The bonus issue announcement contributed to the positive market response as investors responded favorably to the company's corporate action.
Anand Rathi named Hardwyn India as its pick of the month in a report dated June 2, citing favorable technical indicators and potential for further upside. The brokerage noted that the stock is currently trading close to its 20 DEMA support level, with DMI indicators remaining positively aligned and ADX at 32, indicating strong trend strength. As reported by LiveMint, Anand Rathi recommended traders consider accumulating the stock in the ₹24.50-₹25.50 range with a stop-loss at ₹22.50, targeting a price of ₹30 in the near term, implying an upside potential of nearly 23% from the previous closing price of ₹24.41 per share.
Alongside the bonus issue proposal, the board also approved an increase in the company's authorised share capital from ₹50 crore to ₹70 crore, comprising 70 crore equity shares of face value ₹1 each. According to LiveMint reports, a bonus issue involves distributing additional shares to existing shareholders without extra cost, which is generally viewed as reflecting a company's financial strength and growth prospects. While increasing the number of outstanding shares, it does not impact market capitalization but can improve liquidity and affordability for retail investors.
