Orient Technologies' stock jumped more than 13% on Dec 29 after its shareholders gave the green light to a 1‑for‑10 bonus share issue.
What is a bonus issue?
A bonus issue gives existing shareholders extra shares for free, taken from the company's reserves. It doesn’t change the total value of the company, but it does increase the number of shares on the market, making the stock more affordable and liquid.
Details of Orient Tech's bonus issue
- Ratio: 1 new share for every 10 shares you already own.
- Funding: The company will use Rs 4.16 crore from its Securities Premium Account.
- Approval: Both the board and the shareholders have approved the plan.
- Record date: To be announced.
Why this matters to investors
The bonus issue signals that Orient Tech has solid balance‑sheet strength and confidence in its future growth. It also makes the shares cheaper per unit, which can attract more buyers and potentially push the price higher.
- Higher liquidity makes it easier to buy or sell shares.
- Free shares increase the total return for existing investors.
- Shows the company’s financial discipline and focus on high‑growth tech areas like cloud and cybersecurity.
Recent stock performance
In the past week, the stock has risen about 10%, and it’s up roughly 4% over the last month. Over the longer term, the share price is down about 24% so far in 2025, with a current P/E ratio near 27.
Takeaway
Orient Tech’s bonus issue is a positive sign of financial health and could make the stock more attractive to new investors. Keep an eye on the record date and any further announcements about the company’s growth plans.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.