Utssav CZ Gold Jewels has approved a proposal to issue bonus shares in a 1:1 ratio, subject to shareholders' approval and other necessary clearances. According to the company's statement, the board approved the issuance of one fully paid-up equity share of ₹10 each for every existing share held by eligible shareholders on October 23. The record date for determining eligibility for the bonus shares will be announced after the requisite approvals are obtained. The proposed bonus issue will comprise 2.5 crore bonus shares, doubling the total number of equity shares from 2.5 crore to 5 crore. If approved, this will increase the company's paid-up equity share capital from ₹24.998 crore to ₹49.996 crore.
The proposed bonus share issue will significantly increase the company's financial structure, with the paid-up equity share capital rising from ₹24.998 crore to ₹49.996 crore. As reported by the company, the bonus shares will be issued from the company's securities premium reserve, free reserves and retained earnings available as of March 31, 2026. A bonus issue increases the number of shares held by existing shareholders without requiring them to make an additional payment, though the investor's proportional ownership remains unchanged. The shares are expected to be credited within 60 days of the board's approval, subject to approval by shareholders and other applicable statutory and regulatory clearances.
The board also approved a proposal to increase the company's authorised share capital from ₹24.998 crore to ₹60 crore, divided into 6 crore equity shares of ₹10 each. According to the company's statement, the increase, intended to facilitate the proposed expansion of the paid-up share capital, is subject to shareholders' approval and a consequent alteration to the capital clause of the Memorandum of Association. The move would provide headroom for the proposed expansion of the company's paid-up capital, with the shares expected to be credited in 60 days of the board's approval, subject to approval by shareholders and other applicable statutory and regulatory clearances.
Shares of Utssav CZ Gold Jewels have demonstrated exceptional performance, gaining 55% in one month and 354% year-to-date in 2026. The stock closed marginally lower at ₹1,013 per share on NSE on Friday, October 23, following the bonus share announcement. The company, which is a leading manufacturer, wholesaler and exporter of lightweight cubic zirconia (CZ) and gold casting jewellery, will announce the record date and other relevant details in due course, following the requisite approvals. The bonus issue will increase the number of shares held by existing shareholders without changing their proportional ownership or the company's underlying business value.
