1:5 Split and 1:1 Bonus Issue: IT stock hits 5% upper circuit after announcing split and bonus shares

Synopsis: Shares of Silver Touch Technologies jumped sharply after announcing a 1:5 stock split and a 1:1 bonus issue. This makes the company’s shares more accessible and affordable for other investors.

The shares of this company, which provides IT Solutions, Digital Transformation & Emerging Technologies, are in focus after it announced the issuance of bonus shares and a stock split in today’s meeting. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 2,013 crore, the shares of Silver Touch Technologies Ltd reached a day high of Rs 1,598.70 per share (upper circuit), up 5 percent from its previous day’s closing price of Rs 1,522.60 per share. In the last one year, the stock has delivered a robust return of 136 percent, outperforming NIFTY 50’s positive return of 78 percent.

About the announcement 

Silver Touch Technologies has announced two major updates for its shareholders, which are a stock split and a bonus share issue. A company usually does this to make its stock more accessible and attract more small investors.

Firstly, the company is splitting each equity share with a face value of Rs 10 into five shares, each now valued at Rs 2. So, if you own one share today, you’ll soon have five as on the record date, which is said to be announced later, and the board aims to complete the process by March 15, 2026, after securing all necessary approvals.

After the split, Silver Touch will also issue bonus shares in the ratio 1:1, so every shareholder will receive one bonus share for each share held after the split, at no extra cost. These bonus shares will be issued from the company’s free reserves as of March 31, 2025.

For example, if you hold 50 shares of Silver Touch as of the record date, each with a face value of Rs 10. After a 1:5 stock split, your 50 shares become 250 since each share is divided into five. Then, the company announces a 1:1 bonus issue, which means you receive one additional share for every share you own. So, you’ll get an additional 250 bonus shares, making your total 500 shares.

Financial and other highlights

The revenue from operations for Silver Touch Technologies stands at Rs 85.52 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 74.85 crores, up by 14 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 35 percent from Rs 63.20 crore. 

Coming down to its profitability, the company’s net profit stood at Rs 7.46 crore in Q2 FY26, up from Rs 4.40 crore in Q2 FY25, which is a growth of 70 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 4.04 crore, which is a growth of 85 percent.

Silver Touch Technologies has established its presence worldwide, delivering over 4,000 projects for more than 2,000 clients. Their expertise spans digital transformation, cloud services, analytics, automation, and other emerging technologies. They work with both government organisations and large enterprises, with teams located in India, the US, the UK, and Canada.

Their partnerships are extensive as well. Silver Touch collaborates with leading names in cloud, enterprise software, automation, cybersecurity, data, and AI. These alliances enable them to deliver solutions faster, scale digital initiatives, and solve complex problems for clients who require reliable outcomes. By working alongside major technology providers, Silver Touch enhances its credibility and meets the needs of demanding government and enterprise customers.

They have strong capabilities in e-governance, cloud computing, data analytics, automation, cybersecurity, and enterprise applications. The company’s proven track record and expanding international presence speak for themselves.

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