Bemco Hydraulics announces 1:1 bonus share & 1:10 stock split
In a major development, Bemco Hydraulics Ltd has approved a 1:10 stock split and a 1:1 bonus issue, sending shockwaves through the financial markets. The move is expected to result in approximately 21.87 million new shares being issued, with the existing ₹10 shares becoming ten ₹1 shares, plus one bonus share per existing share. This dual announcement has already sent the stock soaring, with the company’s shares locked in the upper circuit.
For investors, this news is a double whammy of sorts. Not only will the stock split make the shares more accessible and affordable, but the bonus issue will also provide an instant return on investment. The bonus share will be issued to existing shareholders, effectively increasing their stake in the company without having to invest any additional capital.
The stock has already seen impressive returns, surging over 120% from its 52-week low. This multibagger return has undoubtedly attracted the attention of investors, who are now eagerly awaiting the implementation of the stock split and bonus issue. With the company’s board approving the proposal on August 29, 2025, investors can expect the new shares to be issued within two months.
So, what does this mean for investors? Let’s break it down:
The Stock Split:
The 1:10 stock split means that the existing ₹10 face value of each share will be reduced to ₹1. This will increase the number of shares outstanding, making the stock more liquid and accessible to a wider range of investors. For instance, an investor holding 100 shares of ₹10 face value will now hold 1,000 shares of ₹1 face value.
The Bonus Issue:
The 1:1 bonus issue means that one bonus share will be issued for every existing share held by the investor. This is essentially an additional share that the company is issuing to its shareholders without requiring any additional payment. The bonus share will have the same face value as the existing share, i.e., ₹1.
The Impact on Share Price:
While the stock split will reduce the face value of each share, the bonus issue will increase the total number of shares outstanding. It’s likely that the share price will remain stable, considering the increased liquidity and the fact that the company’s fundamentals remain strong.
The Company’s Performance:
Bemco Hydraulics Ltd has been performing well, with its stock surging over 120% from its 52-week low. The company’s strong financials and growth prospects have undoubtedly contributed to its impressive stock price appreciation.
What’s Next?
With the board approval and the expected implementation of the stock split and bonus issue within two months, investors can expect a significant increase in the company’s outstanding shares. This could lead to increased liquidity, making it easier for investors to buy and sell shares.
In conclusion, Bemco Hydraulics Ltd’s announcement of a 1:10 stock split and a 1:1 bonus issue is a significant development in the financial markets. The move is expected to increase the company’s outstanding shares, making the stock more accessible and affordable for investors. With the company’s strong performance and growth prospects, this news is likely to attract more investors to the stock.
