10:1 Bonus Shares: Stock Jumps 7% After Company Announces Bonus Issue

Synopsis: Micro-Cap stock jumps 7% upon recommending a 10:1 bonus issue, granting 10 bonus shares for every 1 share held, subject to approvals, while adjusting its FY26 dividend proportionately post bonus issue.

The shares of Micro-Cap stock, which specialise in the manufacturing and distribution of biodiesel and its by-products (such as crude glycerin), focusing on renewable green energy solutions, are in focus in the day’s trade as they have jumped upto 7 percent upon announcing a 10:1 Bonus.

With a market capitalization of Rs. 450.23 crores in the day’s trade, the shares of Kotyark Industries Ltd rose by 6.8 percent, reaching a high of Rs. 416.4 per share compared to its previous closing price of Rs. 445 per share.

What Happened 

Kotyark Industries Ltd, engaged in the manufacturing and distribution of biodiesel and its by-products (such as crude glycerin), focusing on renewable green energy solutions, has recommended a 10:1 bonus issue, under which shareholders will receive 10 bonus equity shares for every 1 existing share held, subject to shareholder and regulatory approvals. 

The company will announce the record date for determining eligible shareholders at a later stage. The company also stated that its previously announced dividend of ₹5 per share for FY26 will be proportionately adjusted after the bonus issue, while keeping the overall dividend payout amount largely unchanged.

Along with it, Kotyark Industries Limited has approved an increase in its authorised share capital from ₹23 crore to ₹200 crore, subject to shareholder approval. The move will raise the company’s equity share capacity from 2.3 crore shares to 20 crore shares of ₹10 face value each.

Financials & Others

The company’s revenue rose by 221 percent from Rs. 19.86 crores in March 2025 to Rs. 63.66 crores in March 2026. Meanwhile, Net profit rose from Rs. 1.51 crores to  Rs. 9.38 crores in the same period.

The company reported a Return on Capital Employed (ROCE) of 15.3% and a Return on Equity (ROE) of 11.6%, reflecting stable operational and shareholder returns. It also maintained a low debt-to-equity ratio of 0.36, indicating a relatively healthy balance sheet.

Additionally, the company has maintained a healthy dividend payout ratio of 41%. Its debtor days improved from 26.4 days to 20.5 days, highlighting better working capital management and faster collection from customers.

Kotyark Industries Limited is an Indian renewable energy and biofuel company engaged in the production and trading of biodiesel and its by-products. The company primarily manufactures biodiesel from waste cooking oil, animal fat, and vegetable oils, supporting India’s clean energy and sustainability initiatives.

The company also operates in the renewable energy segment through solar-related activities and focuses on environmentally sustainable fuel solutions. Kotyark Industries serves both domestic and industrial customers while expanding its presence in the green energy and alternative fuel sector.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 10:1 Bonus Shares: Stock Jumps 7% After Company Announces Bonus Issue appeared first on Trade Brains.