5:8 Bonus Issue: Small-Cap Stock To Issue 63.82 Lakh Bonus Shares Worth Rs 6.38 Cr Out of Reserves

By authorizing a bonus issue in the ratio of 5:8, DMR Hydroengineering & Infrastructures Limited has made a major announcement to reward its shareholders. The company will issue eight fully paid-up equity shares for every five existing equity shares owned by eligible shareholders on the record date, as per the board resolution of July 14, 2025. This will be released at the upcoming Annual General Meeting following shareholder approval. Through this bonus allotment, 63,82,216 equity shares of Rs 10 apiece would be handed out, for a total of Rs 6.38 crore.

According to the financials that ended on March 31, 2025, the bonus share proposal will be financed by the company's free reserves and securities premium. The company's paid-up share capital would rise from Rs 3.98 crore to Rs 10.37 crore after this bonus issuance.

The Board of Directors of the company at its meeting held on Monday, July 14, 2025 has considered and approved "Issuance of fully paid-up Bonus equity shares in the proportion of 5:8 i.e., 8 (Eight) new fully paid-up equity share for every 5 (Five) existing fully paid-up equity share held on Record Date, subject to approval of shareholders in the upcoming Annual General Meeting of Company and other applicable statutory and regulatory approvals, as may be required," said DMR Hydroengineering & Infrastructures in a stock exchange filing.

"The Bonus issue shall be implemented within 2 (two) months from the date of the meeting of its board of directors wherein the decision to announce the bonus issue was taken, subject to shareholders' approval i.e., counting from Monday, July 14, 2025," DMR Hydroengineering & Infrastructures further informed to stock exchanges.

After the board meeting on July 14, 2025, DMR Hydroengineering & Infrastructures Limited also revealed significant changes to its management structure. After his current term ends on December 20, 2025, the board has authorized Shri Subhash Chander Mittal's reappointment as Managing Director for an additional five years. Furthermore, with immediate effect, Shri Mittal has been reappointed as the Board's chairman. Additionally, the board authorized Smt. Neelam Mittal's reappointment as a full-time director for a further five-year term, starting on September 30, 2025. Shri Krishan Kumar Gupta's promotion from Whole-time Director to Non-executive Director, which takes effect on July 14, 2025, is another noteworthy move.

DMR Hydroengineering Share Price Target

"DMR Hydroengineering stock price is bearish & also overbought on the Daily charts with strong resistance at 177.1. Investors should be booking profits at current levels as a Daily close below support of 140.15 could lead to a target of 115 in the near term," commented A R Ramachandran, independent research analyst.

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