1:2 Bonus Shares: To Be Credited By November 02, Record Date To Be Set; Right Time To Buy This Telecom Stock?

The small-cap telecom company Valiant Communications Limited has stated that its Board of Directors issued bonus shares to eligible shareholders, for which a record date has not yet been set. With successful installations in more than 110 countries, Valiant Communications Limited (VCL) is a producer of cybersecurity, NAS & data storage servers, protection, synchronization, transmission, and IT/OT communication equipment. VCL provides a wide range of end-to-end IT/OT solutions for the corporate, defense, and critical infrastructure sectors as well as utility applications such as power utilities, oil and gas, railways, airport communications, and mobile backhaul.

Valiant Communications Bonus Shares

The Board of Directors, in their meeting held on September 03, 2025, have inter-a/ia, "considered and approved the proposal of Issue of Bonus Shares to the Shareholders of the Company in the ratio of 1:2 i.e., 1 (One) new fully paid-up bonus equity share of Rs 10/- each for every 2 (Two) existing equity shares of Rs 10/- each fully paid- up, to the eligible members of the Company, as on the Record Date, as may be fixed by the Company, subject to the approval of the Shareholders of the Company, in their forthcoming Annual General Meeting scheduled to be held on Tuesday, September 30, 2025," said Valiant Communications in a stock exchange filing.

"The Board of Directors recommends the aforesaid issue of bonus shares with the intention of rewarding the shareholders of the Company. This decision has also been necessitated by the need to expand the paid-up equity share capital of the Company. The Company will inform the Record Date for determining eligible members entitled for issuance of Bonus Shares, in due course," Valiant Communications further informed stock exchanges.

One fully paid-up bonus share would be given for every two existing equity shares owned, according to the company's announcement of a bonus issue of 38,14,030 equity shares of Rs 10 each. The company's Capital Redemption Reserve, Securities Premium, and Retained Earnings will be used to issue the bonus shares. From Rs 7,62,80,600, which includes 76,28,060 equity shares of Rs 10 each, the share capital will rise to Rs 11,44,20,900, which includes 1,14,42,090 equity shares of Rs 10 each. The company would use its reserves to capitalise Rs 3,81,40,300 in order to execute this bonus issue.

With a balance of Rs 50,81,69,683 in Capital Redemption Reserve, Securities Premium, and Retained Earnings as of March 31, 2025, the company has a healthy reserve position that may be capitalized for the proposed bonus shares. In order to promptly reward shareholders, the firm has also affirmed that the bonus shares would be credited or issued within two months after the Board's approval, or by November 2, 2025, at the latest.

Valiant Communications Target Price

"Valiant Communications stock price is bearish on the Daily charts with strong resistance at 920. A Daily close below support of 833 could lead to a target of 787 in the near term," commented A R Ramachandran, independent research analyst.

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