The bonus issue is subject to shareholder approval, the company said in an exchange filing on Wednesday (August 26). The record date, which will determine which shareholders are eligible for the bonus shares, will be announced later.
The company plans to issue 3.32 crore new shares with a face value of ₹5 each. The issue will be funded using ₹16.61 crore from Mold-Tek Packaging’s free reserves and retained earnings as of March 31, 2026.
A 1:1 bonus issue will double the number of Mold-Tek Packaging shares in circulation. It does not, by itself, increase the value of an investor’s holding, as the share price typically adjusts to reflect the additional shares.
Following the issue, Mold-Tek Packaging’s paid-up share capital will double to ₹33.23 crore from ₹16.61 crore, while the number of outstanding shares will increase to 6.65 crore from 3.32 crore.
The company had ₹655.12 crore in free reserves and share premium available for capitalisation as of March 31.
Mold-Tek Packaging expects to complete the bonus issue within two months of the board meeting.
Board recommends ₹3 dividend
Separately, the board recommended a final dividend of ₹3 per share for the financial year ended March 31, 2026.
The dividend, equivalent to 60% of the ₹5 face value of each share, is subject to approval at the company’s upcoming annual general meeting.
Importantly, the ₹3 dividend relates to the existing shares and is separate from the proposed bonus issue.
The board also approved doubling the company’s authorised share capital to ₹40 crore from ₹20 crore to accommodate the increase in shares. The proposal is also subject to shareholder approval.
Mold-Tek Packaging shares were trading 1.65% higher at ₹718.45 on Wednesday at 2:01 pm.
Also read: Bonus share, dividend alert: Mold-Tek Packaging to reward shareholders on August 26
