GRM Overseas Declares Positive Q2 Results, Board Okays 2:1 Bonus Issue; Shares Hit 52W-High

After starting at Rs 453.05 on Friday, November 14, GRM Overseas' shares on the BSE hit a new 52-week high of Rs 489 per share. The stock was trading at Rs 468.85 a share, up 4.02%, at the time the article was written. Following the company's announcement on Thursday of its financial results for the quarter and a half of the year that ended on September 30, 2025, together with a bonus issue in a 2:1 ratio, the stock price experienced this rise.

For the July-September quarter of the fiscal year 2025-2026 (FY26), GRM Overseas reported a 15% year-on-year (YoY) jump in consolidated revenue from operations to Rs 362.43 crore. Compared to Rs 9.19 crore during the same time last year, its consolidated net profit increased by an astounding 61% YoY to Rs 14.76 crore during the quarter under review.

The Board of Directors "Approved the Issuance of Bonus Shares to the existing shareholders of the Company in the ratio of 2:1 i.e. 2 (Two) fully paid-up equity shares for every 1(one) existing fully paid-up equity shares held as on proposed Record Date to be fixed for bonus issue, subject to approval of Shareholders of the Company," said GRM Overseas in a stock exchange filing on Thursday.

"The shareholders of the Company, at their Extra-Ordinary General Meeting held on July 13, 2024, had approved the issuance of Convertible Warrants to Promoters/Promoter Group and Non-Promoters, on a preferential basis by way of private placement. Accordingly, in compliance with Regulation 294 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR Regulations"), the bonus equity shares for the holders of such Warrants will be reserved by the Company. The equity shares so reserved shall be issued to the respective holders at the time of conversion of the Warrants, as the case may be, on the same terms and in the same proportion in which the bonus shares were originally issued," GRM Overseas has further informed stock exchanges.

The company has announced a significant bonus issue, proposing to issue approximately 13,81,40,000 bonus equity shares of Rs 2 each, with the final count to be determined based on fully paid-up shares as on the record date.

Subject to shareholder approval, the bonus will be paid out fully from free reserves and/or the share premium account. The company's share capital would increase significantly after the bonus issue: authorized capital will rise from 10,00,00,000 shares to 22,50,00,000 shares, and subscribed and paid-up capital will climb from 6,13,52,000 shares to 18,40,56,000 shares, all at a face value of Rs 2 per share.

The corporation has declared that Rs 27,62,80,000 from its retained earnings (free reserves) will be used to carry out the bonus issue. The firm has free reserves of Rs 33,195.75 lakhs, according to the most recent audited balance statement on March 31, 2025, which is sufficient to meet the recommended capitalization for bonus share issuance. To ensure complete compliance and transparency, all financial data used for this purpose are audited and based on the financial accounts for the year that ended on March 31, 2025. The bonus shares will be credited or distributed within two months of the Board's approval date, according to the company, with an expected completion date of January 12, 2025, at the latest.

"GRM Overseas stock price is bullish but also overbought on the Daily charts with next resistance at 528. Investors should be booking profits as a Daily close below support of 445 could lead to a target of 399 in the near term," commented A R Ramachandran, Independent SEBI registered Research Analyst, Tips2trades.

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