Bemco Hydraulics Announces 1:1 Bonus Share & 1:10 Stock Split
In a move that is likely to delight its shareholders, Bemco Hydraulics Ltd has announced a 1:10 stock split and a 1:1 bonus issue. This development is expected to result in the creation of approximately 21.87 million new shares, which will be issued within two months of the company’s board meeting held on August 29, 2025.
For existing shareholders, this means that their ₹10 shares will be converted into ten ₹1 shares, while they will also receive one bonus share for every share they hold. This bonus share will be credited to their demat accounts, further increasing their overall stake in the company.
The stock has been a multibagger in recent times, having gained over 120% from its 52-week low. This announcement is likely to fuel further growth in its value, making it an attractive option for investors looking to diversify their portfolios.
The 1:10 stock split is a rare occurrence in the Indian stock market, and it is even more unusual for a company to announce a stock split and a bonus issue simultaneously. This move is likely to make the stock more attractive to new investors, who may have been hesitant to invest in a company with a higher face value.
A stock split is a corporate action where a company divides its existing shares into a larger number of shares, usually with a lower face value. This is done to reduce the face value of the shares, making them more affordable for investors. In the case of Bemco Hydraulics, the 1:10 stock split means that the face value of its shares will drop from ₹10 to ₹1.
A bonus issue, on the other hand, is a corporate action where a company issues additional shares to its existing shareholders, usually without any payment or consideration. In this case, the 1:1 bonus issue means that existing shareholders will receive one bonus share for every share they hold.
The combination of a stock split and a bonus issue is likely to have a significant impact on the company’s share price and trading volume. As the new shares are issued, the total number of outstanding shares will increase, which could lead to a decrease in the share price. However, the bonus issue will also increase the total value of the shares held by existing shareholders, which could lead to an increase in the share price.
In addition, the stock split and bonus issue are likely to increase liquidity in the market, making it easier for investors to buy and sell shares. This could lead to a decrease in the share’s volatility, making it a more attractive option for long-term investors.
Bemco Hydraulics is a leading manufacturer of hydraulic systems and components, and its products are used in a variety of industries, including aerospace, automotive, and industrial equipment. The company has a strong track record of growth and profitability, and its shares have been a favorite among investors in recent times.
The company’s stock has been trading in the upper circuit on the Bombay Stock Exchange (BSE) since the announcement of the stock split and bonus issue, indicating strong demand from investors. The stock’s price has risen by over 20% in a single trading session, making it one of the most sought-after stocks in the market.
In conclusion, the announcement of a 1:10 stock split and a 1:1 bonus issue by Bemco Hydraulics Ltd is likely to have a significant impact on the company’s share price and trading volume. Existing shareholders will benefit from the bonus issue, while new investors may be attracted to the stock due to its lower face value. The company’s strong track record of growth and profitability makes it an attractive option for investors looking to diversify their portfolios.
