1:5 Split and 1:1 Bonus Issue: IT Stock Hits 5% Upper Circuit After Setting Record Date

Synopsis: IT stock surged 5% after announcing 6th March 2026 as the record date for a 1:5 stock split and a 1:1 bonus issue, giving shareholders one extra share per share held.

The shares of the Small-cap company, which specializes in providing end-to-end IT services, focusing on digital transformation, enterprise applications, and emerging technologies, are in focus following the Record Date Announcement for their 1:5 Split and 1:1 Bonus Issue.

With a market capitalization of Rs. 1,708.13 Crores on the Day’s Trade, the shares of Silver Touch Technologies Ltd hit a 5 percent upper circuit, reaching a high of Rs. 1347.20 compared to its previous close of Rs. 1283.05.

What Happened

Silver Touch Technologies Ltd, engaged in providing end-to-end IT services, focusing on digital transformation, enterprise applications, and emerging technologies, has announced Friday, 6th March 2026, as the Record Date for two key actions.

Firstly, the company is splitting each equity share with a face value of Rs 10 into five shares, each now valued at Rs 2 with a ratio of (1:5). So, if you own one share today, you’ll soon have five as on the record date.

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.

Financials

The company’s revenue rose by 29.52 percent from Rs. 74 crores in December 2024 to Rs. 96 crores in December 2025. Meanwhile, Net profit rose from Rs. 5 crore to Rs. 11 crores in the same period.

The company demonstrates strong financial performance, with a Return on Capital Employed (ROCE) of 22.0% and Return on Equity (ROE) of 17.6%, supported by a conservative debt-to-equity ratio of 0.33, indicating prudent leverage management. 

Over the last five years, it has achieved robust profit growth at a CAGR of 32.8%, reflecting operational efficiency and consistent earnings expansion. In addition, the company has improved its working capital management, reducing requirements from 92.6 days to 73.4 days, which enhances liquidity and operational flexibility, allowing it to efficiently fund growth while maintaining financial stability.

Silver Touch Technologies Ltd, established in 1995 and headquartered in Ahmedabad, India, is a premier IT solutions provider with a CMMi Level 5 rating. It offers end-to-end digital transformation, including cloud services, SAP, e-governance, and software development, supporting many clients across three continents

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.

The company’s business is primarily driven by Software Services, which account for 51% of its operations. This is followed by E-Governance Services at 20%, System Integration at 15%, ERP Implementation Services at 9%, and Cloud & Facility Management Services at 5%, reflecting a diverse portfolio across technology and management solutions.

The company holds a total order value of Rs. 650 Crores, with 60% coming from recurring orders and 40% from fresh orders, highlighting a strong base of repeat business alongside new client acquisition.

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