Synopsis: The Company’s board approved a 3:1 bonus issue and increased authorised share capital from Rs.5 crore to Rs.15 crore. The issue, funded by up to Rs.8.16 crore from reserves and securities premium, will raise the paid-up share capital from 27.2 lakh shares to 1.088 crore shares, subject to shareholder approval. The stock hit its upper circuit following the announcement.
Shares of a Thane-based manufacturer of woven polymer packaging products, hit the upper circuit on Friday after the company’s Board of Directors approved a bonus issue: shareholders will receive three new fully paid-up equity shares of Rs.10 each for every one existing share held as of a record date yet to be fixed.
Kahan Packaging Limited’s shares hit their 20 percent upper circuit today following the announcement. Based on the most recent confirmed trading levels ahead of the board meeting, shares of the stock were trading around Rs.63.36 apiece, with a market capitalisation of approximately Rs.17.23 crore. It has a P/E of 14.73 times.
Bonus Issue and Capital Restructuring Details
Kahan Packaging’s Board of Directors, at its meeting held on 11th July 2026, approved a 3:1 bonus issue, three free shares for every one held, funded by capitalizing up to Rs.8.16 crore from Free Reserves and the Securities Premium Account, as per the audited financials for the year ended 31st March 2026.
Ahead of the bonus allotment, the Board also approved, subject to shareholder approval through postal ballot, an increase in the company’s Authorised Share Capital from Rs.5 crore, divided into 50 lakh equity shares of Rs.10 each, to Rs.15 crore, divided into 1.5 crore equity shares of Rs.10 each, through the creation of an additional 1 crore equity shares. This step is a necessary precursor to the bonus issue, since the company’s existing authorised capital is not large enough to accommodate the expanded post-bonus share count on its own.
Post-allotment, the company’s paid-up capital will increase from 27.20 lakh shares to 1.088 crore shares. The bonus shares are expected to be credited within two months of Board approval, on or before 10th September 2026, subject to shareholder approval and applicable regulatory clearances. The Board has separately appointed M/s. Zankhana Bhansali & Associates, Practicing Company Secretaries, as scrutinizer for the postal ballot process, and approved the draft Postal Ballot Notice to be dispatched to shareholders.
Reading Today’s Upper Circuit
The stock’s move to its upper circuit today is consistent with the pattern seen leading into this announcement: shares had already hit a 5 percent upper circuit on July 9, when the board meeting was first scheduled, purely in anticipation of a bonus issue and capital increase being on the agenda. Today’s move suggests the market continues to react positively now that the specific 3:1 ratio has been confirmed.
About Kahan Packaging Limited
Incorporated in 2013 and headquartered in Mumbai, Kahan Packaging Limited manufactures and supplies Polypropylene and High-Density Polyethylene woven fabrics, laminated and unlaminated woven sacks, and printed laminates for flexible packaging, serving B2B customers across the agro-pesticides, cement, chemical, fertilizer, and food products industries.
The company operates two manufacturing facilities in Asangaon, Thane, with an installed capacity of 2,600 MTPA for woven fabrics and 500 MTPA for its multi-colour Roto Gravure printing line.
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