Shilchar Technologies Approves 2:1 Bonus Issue and ₹12.50 Final Dividend

The Board of Directors of Shilchar Technologies Limited convened and approved the audited financial results for the quarter and financial year ended March 31, 2025. The company confirmed that its statutory auditors have issued an unmodified audit opinion, reaffirming the financial integrity of the statements presented.

Final Dividend of ₹12.50 Per Share Recommended

A final dividend of ₹12.50 per equity share (equivalent to 125% on face value of ₹10) has been recommended for the financial year 2024–25. This dividend is subject to approval from shareholders during the upcoming Annual General Meeting.

Bonus Shares in 2:1 Ratio Proposed

The company also announced a proposal to issue bonus shares in the ratio of 2:1, meaning shareholders will receive 1 bonus share for every 2 existing equity shares held. This proposal will be subject to shareholder approval through a postal ballot process.

Key details of the bonus issue include:

• Bonus to be issued from free reserves and/or securities premium as of 31st March 2025.

• Pre-bonus share capital: ₹7.62 crore (76.26 lakh shares)

• Post-bonus share capital: ₹11.44 crore (1.14 crore shares approx.)

• Free reserves required for implementation: ₹3.81 crore

• Bonus shares are expected to be credited/dispatched by June 20, 2025, subject to statutory approvals.

Read More: BSE Board to Meet on May 6 to Consider FY25 Results, Dividend; Bonus Issue Record Date Awaited. 

Robust Financial Standing Supports Capitalisation

As per the latest audited balance sheet:

• General Reserve stood at ₹33.07 lakh

• Retained Earnings were a healthy ₹3,372.34 crore

These strong reserves have enabled the company to confidently propose a sizeable bonus issue without impacting its ongoing operational capacity.

Share Price Reaction: Hits Upper Circuit

Following the announcement, Shilchar Technologies’ share price was locked at its 5% upper circuit limit. 

Conclusion 

The stock is in action after the company announced a generous bonus and dividend payout, underlining confidence in its performance and reserves.

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