1:1 Bonus Share: Stock jumps 7% after receiving approval for bonus issue

The shares of the Micro-Cap company, specializing primarily in elevator solutions and stainless steel polishing, are in focus after securing shareholders approval for a 1:1 bonus share issue.

With a market capitalization of Rs. 434.38 Crores on Wednesday, the shares of Aaron Industries Limited rose by 6.9 percent after making a high of Rs. 424.95 compared to its previous closing price of Rs. 397.25.

Aaron Industries Limited, engaged in the manufacturing of elevator products and parts, including cabins, doors, and other components, has received shareholders’ approval for a bonus issue.

They have announced that shareholders have approved a bonus issue of equity shares in a 1:1 ratio, meaning shareholders will receive one fully paid-up bonus share for every existing share held as of the record date. 

A total of 1,04,73,239 new equity shares of Rs. 10 each will be issued, increasing the paid-up share capital from Rs. 10.47 crore to Rs. 20.94 crore. The bonus shares will be issued out of the company’s free reserves and/or securities premium account, which have sufficient audited balances as of March 31, 2025.  The bonus shares are expected to be credited on or before September 21, 2025, subject to shareholder and regulatory approvals.

Financials & Others

The company’s revenue rose by 26 percent from Rs. 19.17 crore to Rs. 24.17 crore in Q4FY24-25. Meanwhile, the Net profit rose from  Rs. 2.33 crore to  Rs. 2.75 crore during the same period.

The company maintains a strong financial position with a low debt-to-equity ratio of 0.74. It has delivered healthy returns with an average ROE of 17.39% and ROCE of 16.50% over the last three years, indicating proper capital usage.

Along with a promoter shareholding above 65%, the company shows strong promoter confidence. It has also achieved an impressive average revenue growth of 18.77% and net profit growth of 19.51% over the past three years.

Aaron Industries Limited is a trusted name in the elevator industry, founded in 2013, offering a complete range of elevator solutions and stainless steel processing services. The company specializes in manufacturing elevator cabins, automatic door systems, traction machines, and polished stainless steel products, serving both residential and commercial sectors.

The company operates across two main divisions—Stainless Steel and Elevator Systems. In the stainless steel segment, it offers matt & mirror finishes, polishing, decorative SS sheet press plates, PVD coating, and embossing. 

In the elevator division, products include automatic doors, lift systems, cabin frames, and complete elevator cabins for various uses. It also manufactures fire-resistant doors and auto center swing doors.

Written by Sridhar J 

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