1. At a Glance
Narmada Macplast Drip Irrigation Systems Ltd just dropped the ultimate combo pack: 1:1 Bonus Issue + 5-for-1 Stock Split. The board doubled your shares and then multiplied them by five. If math isn’t your thing: your single share magically turns into 10 shares (post both events). Oh, and the authorized capital now balloons to ₹10 Cr to accommodate this fireworks display.
2. Why This Matters?
This isn’t just a corporate gimmick. Bonus shares scream confidence (“We have reserves to spare”), and stock splits scream accessibility (“Let retail buy us like candy”). Together, they improve liquidity, attract new investors, and sometimes pump the price just because… hype.
3. The Moves (Boardroom Edition)
- MOA & AOA Revamp: Old 1956 Companies Act rules thrown out; shiny 2013 Act alignment adopted.
- Authorized Capital Boost: From ₹5 Cr to ₹10 Cr. Because dilution needs room.
- Bonus Issue: 1:1 from free reserves of ₹4.1 Cr.
- Stock Split: ₹10 face value becomes ₹2. Suddenly, every share becomes five.
Meeting duration? 90 minutes. Corporate magic doesn’t need overtime.
4. Bonus Issue Details
| Particular | Info |
|---|---|
| Bonus Ratio | 1:1 |
| Shares Pre-Issue | 36.23 Lakh shares (FV ₹10) |
| Shares Post-Issue | 72.46 Lakh shares (FV ₹10) |
| Reserves Used | ₹4.10 Cr (audited) |
| Dispatch/Credit | Within 2 months post shareholder nod |
Verdict: Classic wealth illusion—more shares, same pie, but retail loves it.
5. Stock Split Details
| Particular | Info |
|---|---|
| Split Ratio | 1:5 |
| Pre-Split Paid-up Capital | 72.46 Lakh shares (FV ₹10) |
| Post-Split Paid-up Capital | 3.62 Cr shares (FV ₹2) |
| Authorized Capital | ₹10 Cr / 5 Cr shares of ₹2 FV |
Humour check: Old ₹10 note shredded into five ₹2 coins—still ₹10, but feels more.
6. Why the Hype?
- Liquidity boost: Smaller face value, more tradable shares.
- Retail attraction: ₹2 face value looks “cheap” (psychology 101).
- Market sentiment: Bonus + split = a cocktail bulls can’t resist (at least initially).
7. Shareholding Impact
No shareholder loses out. If you had 100 shares (FV ₹10), you’ll now own:
- 200 shares (post bonus) → 1000 shares (post split).
Same stake, bigger number in your demat—bragging rights unlocked.
8. Edu Take™
Narmada Macplast just went full desi on investor love—double shares, quintuple split. Financially, it’s neutral (no new money), but optically, it’s bullish. Watch out for the inevitable pre-record date rally and possible post-event chill.
Final Line: Think of it as a 10x party in your demat—minus the hangover (hopefully).
Written by EduInvesting Team | 28 July 2025
Tags: Narmada Macplast, Bonus Shares, Stock Split, Edu Style Article, SEBI Regulation 30
