Utssav CZ Gold Jewels Ltd has approved the issuance of bonus shares at a 1:1 ratio. This decision will allow the paid-up share capital to double to 49.996 crore rupees, subject to obtaining shareholder approval and other necessary regulatory permissions.
The company's Board of Directors approved this proposal on October 23. According to the jewelry manufacturer's statement, one fully paid-up share certificate with a face value of 10 rupees will be issued for every existing security held by the respective shareholder.
The proposed issuance will amount to 2.5 crore bonus shares, increasing the total number of securities from 2.5 crore to 5 crore. Following this issuance, the company's paid-up share capital will rise from 24.998 crore to 49.996 crore rupees.
The bonus shares will be issued from the company's premium capital, free reserves, and retained earnings as of March 31, 2026. The shares are expected to be credited within 60 days after board approval, provided all required approvals from shareholders and regulators are obtained.
The company has not yet announced the record date, which will determine the shareholders entitled to receive the bonus shares.
Furthermore, the board of directors approved a proposal to increase the authorized capital to 60 crore rupees from the current 24.998 crore rupees. This increased capital will be divided into 6 crore shares with a face value of 10 rupees. This step, which also requires shareholder approval, will provide a reserve for the planned expansion of the company's paid-up capital.
The issuance of bonus shares increases the number of shares held by existing shareholders without requiring additional payments from them. Although the number of shares held by each respective investor will double with the proposed 1:1 issuance, the investor's proportional stake will remain unchanged under other equal conditions. The issuance itself does not increase the fundamental value of the company's business or the aggregate investment value for shareholders.
Utssav CZ Gold Jewels is engaged in the manufacturing, wholesale trade, and export of light jewelry products made from cubic zirconia and gold casting.