Bemco Hydraulics announces 1:1 bonus share & 1:10 stock split
In a move that is expected to boost investor sentiment, Bemco Hydraulics Ltd has approved a 1:10 stock split and a 1:1 bonus issue. This significant development is likely to result in approximately 21.87 million new shares being issued, with the actions expected to take place within two months of the August 29, 2025, board meeting.
Under the 1:1 bonus share issue, existing shareholders will receive one bonus share for every share they hold. This means that if an investor currently holds one ₹10 share, they will be entitled to receive one more ₹1 share, free of cost. The 1:10 stock split, on the other hand, will see the existing ₹10 shares divided into ten ₹1 shares.
The combination of these two measures is expected to increase the liquidity and trading volume of the company’s shares, making it more attractive to investors. The move is also likely to reduce the company’s gearing ratio, making it easier for Bemco Hydraulics to raise additional capital in the future.
Bemco Hydraulics has been a multibagger stock, with its share price rising over 120% from its 52-week low. The stock has been locked in the upper circuit for some time now, and this latest development is likely to further boost investor confidence.
The company’s financial performance has been impressive in recent years, with its revenue and profit growth consistently outpacing the industry average. Bemco Hydraulics has a strong track record of generating cash flows, which has enabled it to reduce its debt and maintain a healthy balance sheet.
The company’s management has been focused on expanding its operations and increasing its market share, and the recent announcement is seen as a positive step towards achieving this goal. The increased liquidity and trading volume are likely to attract more investors to the stock, which could lead to further price appreciation in the coming months.
The stock has been a darling of institutional investors, with many large investors holding significant stakes in the company. The recent announcement is likely to attract more investors to the stock, and the company’s valuation multiple is expected to expand in the coming months.
In conclusion, the announcement of a 1:1 bonus share and a 1:10 stock split by Bemco Hydraulics Ltd is a positive development for investors. The increased liquidity and trading volume are likely to attract more investors to the stock, and the company’s valuation multiple is expected to expand in the coming months. With its strong financial performance and expansion plans, Bemco Hydraulics is well-positioned to continue delivering multibagger returns to its investors.
