Big Gift For eClerx Shareholders! Stock Set To Double In Shares Via 1:1 Bonus Issue; Should Investors Cheer?

eClerx Services Limited has announced a major corporate action, with its Board of Directors approving the issuance of bonus equity shares at its meeting held on January 28, 2026. The board meeting, which lasted over four hours, concluded with the approval of a 1:1 bonus issue, subject to shareholder approval through a postal ballot.

For each existing equity share of Rs 10 held by shareholders as of the record date, which will be revealed later, eClerx will issue one fully paid-up equity share of Rs 10 apiece under the approved bonus issue. This implies that without making additional investments, eligible shareholders will effectively double their stake in the company.

The bonus shares, once allotted, will rank pari-passu with existing equity shares and carry identical rights, including voting and dividend entitlements.

The bonus issue will involve the issuance of approximately 4.70 crore new equity shares. These shares will be capitalised entirely out of the company's retained earnings, which stood at a robust Rs 1,377.7 crore as of March 31, 2025, based on audited financial statements. The amount required for the bonus issue-around Rs 47 crore-represents only a small portion of the available free reserves, underlining the company's strong financial position.

Following the bonus issue, eClerx's authorized share capital will stay at Rs 100 crore, but its paid-up equity share capital would climb from around Rs 47.03 crore to Rs 94.05 crore. According to the corporation, the bonus shares should be credited or shipped within 60 days of the board approval date, with March 27, 2026, being the latest possible date.

eClerx Services Ltd. had a solid December quarter, with its net profit (PAT) growing 39.4% year on year (YoY) to Rs 191 crore from Rs 137 crore in the same period last year (Q3 FY25). While the total income was Rs 1,100.4 crore as opposed to Rs 874.3 crore in Q3FY25, operating revenue jumped 25.3% YoY to Rs 1,070 crore from Rs 853.8 crore in the year-ago quarter.

Operating-wise, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose from Rs 207 crore to Rs 276.1 crore, a 33.3% YoY growth. The EBITDA margin surged to 25.8% as against 24.3% in the corresponding quarter last year.

eClerx Services Target Price

"EClerx Services' stock price is bearish on the Daily charts with strong resistance at 4815. A Daily close below support of 4535 could lead to a target of 4068 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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