Synopsis: A small-cap company’s board clears a stock split and bonus issue in one sitting, with both actions expected to be completed by August 2026, pending shareholder nod.
A Gujarat-based listed company has announced two shareholder-friendly corporate actions in a single board meeting. The move will increase the total number of shares in the hands of existing investors significantly, with eligible shareholders set to receive additional shares automatically in their demat accounts on the record date.
Shares of Kalind Limited, with a market capitalization of Rs. 1,157 crore, are trading at a price of Rs.94.5 i.e. 3.6% up from its previous closing price of Rs.91.2. It is trading at a P/E ratio of 42.5.
Dual Corporate Actions Approved by Board
Kalind Limited’s board of directors, at its meeting held on June 3, 2026, approved a 1:5 stock split and a 1:2 bonus share issue. Both actions are subject to shareholder approval through a postal ballot, and the company aims to complete both corporate actions on or before August 2, 2026.
What the Stock Split Means for Shareholders
In a stock split, the face value of each share is reduced while the number of shares held by each investor increases proportionally. Here, every 1 share with a face value of ₹10 will be split into 5 shares with a face value of ₹2 each. So, if you hold 100 shares today, you will hold 500 shares after the split. The total value of your holding stays the same – only the number of shares increases. The company’s pre-split paid-up capital stands at 12,18,90,000 shares of ₹10 each, which will become 60,94,50,000 shares of ₹2 each post-split. The rationale cited by the company is to enhance liquidity and enable broader participation from public shareholders.
What the Bonus Issue Means for Shareholders
After the split takes effect, the company will issue bonus shares in the ratio of 1:2 – meaning 1 free bonus share for every 2 shares held. This is applied on the post-split share count. So if you hold 500 post-split shares, you will receive an additional 250 shares free of cost, taking your total to 750. At the company level, the paid-up capital will increase from 60,94,50,000 shares to 91,41,75,000 shares after the bonus issue. The bonus shares will be issued out of the company’s free reserves and securities premium, which stood at ₹91.07 crore as on March 31, 2026. The total amount required to fund the bonus issue is ₹60.945 crore.
Combined Effect: A Simple Example
If an investor holds 10 shares of Kalind Limited today, the split will convert them into 50 shares. The bonus issue will then add 25 more shares, bringing the total to 75 shares. Every eligible shareholder on the record date – yet to be announced – will receive these benefits automatically in their demat account.
About the Company
Kalind Limited is a Surat-based company that has undergone multiple business transformations over the years. Formerly known as Arunis Abode, it was renamed Kalind in 2025 and currently operates in heavy machinery leasing, infrastructure-related services, and real estate activities. The company provides earth-moving equipment along with operators and fuel for construction projects. After a change in management, Kalind has focused on expanding its infrastructure presence, reporting strong growth in revenue and profitability in FY26 while remaining virtually debt-free.
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