1:2 Bonus Issue: Stock jumps 6% after board approves bonus shares

Synopsis: Kapston Services Limited approved a 1:2 bonus issue, granting shareholders one additional Rs. 5 equity share for every two shares held, increasing total shareholdings proportionately.

This Micro-cap stock, engaged in integrated facilities management, providing manpower solutions, security, housekeeping, maintenance, and specialized services across diverse sectors, jumped 5.69 percent after the board considered a bonus share issue of 1:2.

With a market capitalization of Rs. 833.84 crores, the share of Kapston Services Limited has reached an intraday high of Rs. 433.50 per equity share, rising nearly 5.69 percent from its previous day’s close price of Rs. 410.15. Since then, the stock has retreated and is currently trading at Rs. 411 per equity share. 

Kapston Services Limited’s Board of Directors has decided to issue bonus shares at a ratio of 1:2, meaning that shareholders will receive one new fully paid-up equity share of Rs. 5 each for every two existing fully paid-up equity shares they hold. 

For example, if a shareholder owns 1,000 shares of Kapston Services Limited, they will receive 500 bonus shares, bringing their total holding to 1,500 shares after the 1:2 bonus issue. 

Kapston Services Limited has a strong and diversified client base, including Wipro, Wells Fargo, Genpact, Lodha Group, Pfizer, KIMS Hospitals, Hindalco, Airtel, NCC, Shapoorji Pallonji, Aurobindo Pharma, Dr. Reddy’s Laboratories, CtrlS, Usha, MTAR Technologies, Yashoda Hospitals, Hetero, Caplin Point Laboratories, Page Industries, and several other leading organizations across sectors.

Kapston Services Limited has a wide national presence with branch offices across key Indian cities, including New Delhi, Gurugram, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata, Raipur, Indore, Guwahati, Bhubaneswar, Visakhapatnam, Guntur, Kanpur, and Jharkhand. 

Kapston Services Limited is an integrated facilities management company headquartered in Hyderabad, India, founded in 2009 by first-generation entrepreneur Srikanth Kodali. Originally known as Kapston Facilities Management Limited, it rebranded in February 2022.

The company specializes in providing comprehensive manpower solutions, which include general staffing, IT staffing, private security, housekeeping, engineering maintenance, pest control, facade cleaning, landscaping, pantry management, canine brigade, and e-security services. It serves a variety of sectors such as IT/ITES, manufacturing, pharmaceuticals, e-commerce, logistics, infrastructure, retail, telecommunications, hospitality, healthcare, banking, public sector undertakings (PSUs), and the automotive industry.

Coming into financial highlights, Kapston Services Limited’s revenue has increased from Rs. 168.11 crore in Q2 FY25 to Rs. 210.65 crore in Q2 FY26, which has grown by 25.30 percent. The net profit has also grown by 79.64 percent from Rs. 3.93 crore in Q2 FY25 to Rs. 7.06 crore in Q2 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at 12.9 percent and 22.2 percent, respectively. Kapston Services Limited has an earnings per share (EPS) of Rs. 11.7, and its debt-to-equity ratio is 1.72x.

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