Utssav CZ Gold Jewels Ltd has approved a 1:1 bonus share issue that would double its paid-up equity share capital to ₹49.996 crore, subject to shareholders’ approval and other regulatory clearances.
The company’s board approved the proposal on October 23 to issue one fully paid-up equity share of ₹10 each for every existing share held by eligible shareholders, the jewellery manufacturer said in a statement.
The proposed issue will comprise 2.5 crore bonus shares, increasing the total number of equity shares to 5 crore from 2.5 crore. The company’s paid-up equity share capital will rise from ₹24.998 crore to ₹49.996 crore following the issue.
The bonus shares will be issued from the company’s securities premium, free reserves and retained earnings available as of March 31, 2026. The shares are expected to be credited within 60 days of the board’s approval, subject to the requisite shareholder and regulatory clearances.
The company has yet to announce the record date, which will determine shareholders eligible to receive the bonus shares.
The board also approved a proposal to increase authorised share capital to ₹60 crore from ₹24.998 crore, divided into 6 crore equity shares of ₹10 each. The move, which also requires shareholder approval, would provide headroom for the proposed expansion of the company’s paid-up capital.
A bonus issue increases the number of shares held by existing shareholders without requiring them to make an additional payment. While the number of shares held by each eligible investor would double under the proposed 1:1 issue, the investor’s proportional ownership would remain unchanged, all else being equal. The issue does not, by itself, increase the company’s underlying business value or shareholders’ aggregate investment value.
Utssav CZ Gold Jewels manufactures, wholesales and exports lightweight cubic zirconia and gold-casting jewellery.
