6.14 Cr New Shares Incoming! LKP Finance Shocks Dalal Street With 4:1 Bonus Issue; Stock Set To Explode?

Following its Board of Directors meeting on January 19, 2026, LKP Finance Limited announced a number of significant corporate actions. The company notified the stock exchanges of key measures aimed at strengthening shareholder value and enhancing its capital base in accordance with SEBI laws.

The proposal to raise the company's authorized share capital from Rs 30 crore to Rs 110 crore was one of the Board's main approvals. This substantial rise in authorized capital is subject to shareholder approval.

The Board of Directors "Considered and Approved the issue of Bonus equity shares in the ratio of 4:1, i.e., four (4) new fully paid-up equity shares of face value Rs 10/- (Rupees Ten only) each for every one (1) existing fully paidup equity share of face value Rs 10/- (Rupees Ten only) each, to the eligible equity shareholders of the Company as on the record date, subject to the approval of the shareholders of the Company, by capitalization of the Securities Premium Account," said LKP Finance in a stock exchange filing.

For each existing fully paid-up equity share held as of the record date, shareholders would get four fully paid-up equity shares, each with a face value of Rs 10. Subject to shareholder approval, the bonus issue will be carried out by capitalizing the company's Securities Premium Account.

LKP Finance plans to issue around 6.14 crore bonus equity shares, totaling Rs 61.44 crore, according to the official declaration. The company's paid-up equity share capital, which was split into about 1.54 crore equity shares, was Rs 15.36 crore prior to the bonus issue. Following the bonus issue, the paid-up capital will increase dramatically to Rs 76.81 crore, and the total number of equity shares would climb to about 7.68 crore, significantly broadening the equity base.'

The bonus issue will be funded entirely from the Securities Premium Account, which stood at over Rs 126.59 crore as per the unaudited financial statements for the period ended December 31, 2025. This indicates that the company has sufficient reserves to comfortably support the proposed bonus distribution without impacting its operational finances.

Furthermore, the Board authorized the Postal Ballot notice to seek the permission of shareholders on matters that need their approval, such as the bonus issue and the increase in authorized share capital. M/s Abhay K & Associates, Company Secretaries, has been designated as the scrutinizer for the postal ballot exercise in order to ensure transparency and compliance throughout the voting process.

LKP Finance has indicated that the bonus equity shares are expected to be credited or dispatched within two months from the date of the Board meeting, that is, on or before March 19, 2026.

LKP Finance Target Price

"LKP Finance stock price is bearish with strong resistance at 1180 on the Daily charts. A Daily close below support of 1028 could lead to a target of 910 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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