According to disclosures made under Regulation 30 of SEBI listing regulations, Riddhi Steel & Tube has proposed significant amendments to its memorandum and articles of association. The company plans to substantially expand its authorized capital structure from the current ₹8.50 crores to ₹15.00 crores, representing a 76.47% increase in the capital ceiling. The number of authorized shares will increase from 85,00,000 shares to 1,50,00,000 shares, while maintaining the face value at ₹10.00 per share.
The company has announced a 1:2 bonus issue, offering shareholders one new fully paid-up equity share for every two existing shares held. As reported in the regulatory filing, the bonus shares will carry a face value of ₹10.00 each, maintaining consistency with the current share structure. The total bonus issue is valued at ₹4.15 crores, comprising 41,45,126 bonus shares that will be issued to eligible shareholders.
According to the company's disclosure, the bonus issue will significantly impact the paid-up share capital structure. The paid-up shares will increase from the current 82,90,252 shares to 1,24,35,378 shares post-bonus implementation. Correspondingly, the paid-up capital will rise from ₹8.29 crores to ₹12.44 crores, while the face value will remain unchanged at ₹10.00 per share.
As per the audited financial position disclosed by the company, adequate reserves are available to support the bonus issue implementation. The company has ₹7.90 crores in securities premium and ₹45.91 crores in retained earnings, while requiring only ₹4.15 crores for the bonus issue. The bonus shares will be funded through a combination of securities premium and retained earnings, ensuring sufficient financial resources for the proposed capitalization.
According to the regulatory filing, the company expects to complete the bonus share crediting process within two months of board approval, with an estimated completion date on or before March 1, 2026. The disclosure has been made in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and relevant SEBI circulars dated November 11, 2024, and December 31, 2024. The proposed amendments require shareholder approval before implementation, following standard corporate governance procedures for capital structure modifications.
