Infra stock declares 1:1 bonus shares, raising of share capital. Details here

Chavda Infra on Thursday announced a 1:1 bonus share issue, under which shareholders will receive one fully paid-up equity share for every one existing equity share held, subject to shareholders' and other regulatory approvals.

The company's board also approved an increase in its authorised share capital to ₹70 crore from ₹35 crore and cleared the draft postal ballot notice to seek shareholders' approval for the proposed bonus issue and the capital hike.

"The Board considered and recommended a bonus issue in the ratio of 1:1, i.e., one new bonus equity share of ₹10/- each for every one existing fully paid-up equity share of ₹10/- each, subject to approval by the shareholders and any other applicable statutory and regulatory approval," the company said in its regulatory filing today.

The bonus issue will involve the allotment of 3.26 crore equity shares of face value ₹10 each. Following the issue, the company's paid-up equity share capital will increase from ₹32.66 crore, comprising 3.27 crore equity shares, to around ₹65.31 crore, comprising 6.53 crore equity shares. No fractional shares will be issued.

The company said the bonus shares will be issued by capitalising share premium, free reserves and retained earnings available as of March 31, 2026. As of that date, Chavda Infra had ₹187.84 crore in share premium, free reserves and retained earnings available for capitalisation, significantly higher than the ₹32.66 crore required for the bonus issue.

The bonus shares will rank pari passu with the existing equity shares in all respects and will be eligible for all future dividends and other corporate actions declared after their allotment. The company expects to credit or dispatch the bonus shares within 60 days from the date of the board's approval, subject to the necessary approvals.

The board also considered a dividend proposal but decided not to declare a dividend. Instead, it chose to retain the profits to strengthen the company's financial position and reserves. According to the company, the decision is aimed at enhancing financial flexibility, supporting future business expansion and creating long-term value for shareholders.

Chavda Infra share price trend

The company's shares made their stock market debut in October 2023, listing with a 40% premium over the IPO price of ₹65. However, the stock couldn't sustain its rally in the following months.

Between January and September 2024, the stock witnessed a one-way spike, gaining 134%. The rally also pushed the stock to cross the ₹200 mark, reaching a fresh all-time high of ₹209.

Nevertheless, amid sharp volatility in the broader market, the stock lost its gains and, at current levels, is trading 36% below its all-time high.

Chavda Infra has established a strong presence in the real estate and construction sector in Gujarat, particularly in Ahmedabad and Gandhinagar. The company adopts a strategic business model focused on both residential and commercial projects, with a growing emphasis on high-rise buildings.

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