Bemco Hydraulics announces 1:1 bonus share & 1:10 stock split
In a move that is expected to boost the value of its shares, Bemco Hydraulics Ltd has announced a 1:1 bonus issue and a 1:10 stock split. This significant development is likely to have a positive impact on the company’s shareholders, who have already seen significant returns on their investment. In fact, the stock has been a multibagger, rising by over 120% from its 52-week low.
As a result of the 1:10 stock split, existing ₹10 shares will become ten ₹1 shares. Additionally, the 1:1 bonus issue will see one bonus share being issued for every existing share. This means that shareholders will receive two shares for every one they currently hold. The total number of new shares that will be issued as a result of these actions is expected to be around 21.87 million.
The board of directors of Bemco Hydraulics Ltd approved these measures at a meeting held on August 29, 2025. The company has stated that these actions are expected to be implemented within the next two months. The stock has already seen significant appreciation in value and is currently locked in the upper circuit, indicating that it is trading at its upper limit.
Bemco Hydraulics Ltd is a leading player in the hydraulics manufacturing sector, and its shares have been in high demand in recent times. The company’s financial performance has been strong, with its revenue and profits growing consistently over the years. The 1:1 bonus issue and 1:10 stock split are expected to further boost the company’s valuation and attract more investors to its shares.
The 1:1 bonus issue is a rare event in the Indian stock market, where companies issue additional shares to their existing shareholders without any additional payment. This move is designed to increase the company’s capital base and reduce the dilutive effect of issuing new shares. In this case, the bonus issue is expected to increase the company’s capital base by around ₹210 crore, based on the current market price of its shares.
The 1:10 stock split, on the other hand, is a more common event, where the face value of a company’s shares is reduced to make them more affordable to investors. This move is designed to increase the liquidity of the company’s shares and make them more attractive to a wider range of investors. In this case, the stock split is expected to reduce the face value of Bemco Hydraulics Ltd’s shares from ₹10 to ₹1.
The combination of the 1:1 bonus issue and 1:10 stock split is expected to have a significant impact on the company’s valuation. The total number of new shares that will be issued is expected to increase the company’s market capitalization by around ₹420 crore, based on the current market price of its shares. This is likely to attract more investors to the company’s shares and drive up its valuation.
In conclusion, the announcement of a 1:1 bonus issue and a 1:10 stock split by Bemco Hydraulics Ltd is a significant development that is expected to boost the value of its shares. The company’s strong financial performance and its leadership position in the hydraulics manufacturing sector make it an attractive investment opportunity. The 1:1 bonus issue and 1:10 stock split are expected to further boost the company’s valuation and attract more investors to its shares.
