Dynamic Cables gains after board declares 1:1 bonus issue

Dynamic Cables advanced 2.61% to Rs 868.50 after the company announced a 1:1 bonus issue following the outcome of its board meeting held on 30 May 2025.

According to an exchange filing, the companys board, in its meeting held on 30 May 2025, approved and recommended the issuance of bonus equity shares by way of capitalization of securities premium, in the ratio of 1:1 i.e., one new fully paid-up equity share of Rs 10 each for every one existing fully paid-up equity share of Rs 10 eachto eligible shareholders of the company as on the record date. The issuance is subject to the approval of shareholders and other applicable regulatory and statutory approvals. The record date to determine the eligible shareholders for the bonus equity shares will be intimated separately to the exchanges.

Post the bonus issue, the paid-up share capital of the company will increase from Rs 24.23 crore (2.42 crore shares) to Rs 48.46 crore (4.84 crore shares).

The company confirmed that Rs 111.11 crore was available in the share premium account as of 31 March 2025, with Rs 24.23 crore earmarked for the bonus issue. The bonus shares are expected to be credited/dispatched within two months from the boards approval, i.e., by 29 July 2025.

In another key development, the board has proposed to increase the authorized share capital of the company from Rs 25 crore to Rs 50 crore, which will entail an amendment to Clause V of the Memorandum of Association.

Dynamic Cables is a manufacturer of power infra cables that includes LT, HT, EHVC, power control & instrumentation cables, flexible & industrial cables, solar cables, and railway signaling cables. It supplies cables to government DISCOMs, private distribution companies, private EPC contractors, and industrial and export clients and has 3 manufacturing plants situated at Jaipur and Reengus.

The company's net profit rose 71.09% to Rs 23.56 crore on a 37.41% increase in net sales to Rs 331.17 crore in Q4 March 2025 over Q4 March 2024.

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