Mindteck hits 5% upper circuit as BSE, NSE approve 1:4 bonus issue

Mindteck Bonus Issue: Mindteck's board had proposed the issuance of bonus shares on August 8. The Record Date for the bonus issue is September 20

MindTeck (India) shares were locked in the 5-per cent upper circuit band on the BSE and the National Stock Exchange (NSE) on Friday at 12:43 PM. By comparison, the benchmark indices were flat at the time of the filing of this report.

The stock froze at Rs 403.2 per share on the BSE and Rs 403.75 on the NSE. The stock gained after the small-cap information technology (IT) company received approval from both the exchanges to issue bonus shares.

Bonus shares are additional shares issued to existing shareholders based on shares they currently possess, at no additional cost.

"The company has received the approval from BSE Limited and National Stock Exchange of India Limited for bonus issue in the ratio of 1:4 i.e., investors will receive one new fully paid-up equity share of Rs 10 each for every four existing fully paid-up equity shares of Rs 10 held by them," the filing read.

Both the exchanges approved the issue and allotment of 64,00,000 bonus equity shares of Rs 10 each in the ratio of 1:4.

"The exchange is pleased to grant in-principle approval only for the issue and proposed allotment of 64,00,000 Equity shares of Rs10/- each as bonus share in the ratio of 1 new equity share for every 4 existing equity shares held," the NSE filing read.

Mindteck's board had proposed the issuance of bonus shares on August 8. The record date for the same was set as September 20, 2024.

Mindteck expertise in embedded systems, enterprise applications, and testing powerful complement to competencies in digital engineering, including cloud, IoT, and cybersecurity, as well as data engineering services such as AI/ML and analytics.

In Q1FY25, the company reported a consolidated net profit after tax (excluding exceptional items) of Rs 8.11 crore as against Rs 6.23 crore year-on-year (Y-o-Y).

Meanwhile, consolidated revenue for the quarter stood at Rs 108.15 crore against Rs 93.41 crore a year ago.