Wires and cable-maker V Marc India implemented its 5:1 bonus share issue on Tuesday, making shares appear to crash 81% when in reality they only adjusted for the bonus distribution. According to The Economic Times, the company proposed to issue 12.21 crore shares out of its free reserves or share premium available on March 31, 2026, which stood at more than ₹143 crore. The bonus issue was implemented within two months from the board meeting decision, subject to shareholders' approval through postal ballot. Eligible shareholders received 5 new bonus shares with a face value of ₹10 each for every share held as on the record date.
Shares of V Marc India opened at ₹291.50 apiece on NSE on Tuesday, sharply lower than Monday's closing price of ₹1,568.30 apiece. However, this decline was solely due to the bonus share adjustment and did not reflect any loss in shareholder value. The stock gained more than 16% to trade at ₹303.45 apiece after adjusting for the bonus issue, as seen at 11:30 am on Tuesday. The company's market capitalisation stood at nearly ₹3,834 crore at the end of Monday's trading session, with shares gaining around 1.5% in one week and nearly 4% in one month.
Only shareholders who held V Marc India shares in their demat accounts as of Tuesday will be eligible to receive the bonus shares. Due to SEBI's T+1 settlement norm, investors must purchase the company's shares at least one trading day before the record date to ensure they are credited to their demat accounts by that date and qualify for the bonus issue. This timing requirement makes Tuesday the critical deadline for potential investors to participate in the corporate action.
This marks V Marc India's first-ever bonus issue, which is typically viewed as a sign of strong financial health and growth prospects. The company operates in the wires and cable-making sector with backing from ace investor Ashish Kacholia. According to The Economic Times, bonus issues consist of free shares distributed from company reserves and do not change the company's market capitalisation, though they can improve liquidity and affordability by allowing more investors to add shares to their portfolios. The company's shareholding pattern shows around 2,331 retail shareholders held nearly 14% stake in the company as at the end of financial year 2026, while promoters and promoters held nearly 65% stake.
According to The Economic Times, V Marc India's bonus issue is part of a broader wave of corporate actions this week, with 49 companies including major names like JSW Steel, Sun Pharma, Titan Company, Axis Bank, BSE, and Nestle having fixed record dates for various corporate actions between July 6-10. The timing makes Tuesday particularly significant as it coincides with multiple corporate actions across the market, highlighting the active participation in shareholder rewards during this period.
