Bonus Stock Alert! After 1:1 Bonus Approval, Small Cap Stock Poised For Breakout; Time To Enter?

One of the top providers of investment casting manufacturers for the parts of industrial valves is Captain Technocast. A renowned feinguss foundry, exporter, and supplier of a high-quality assortment of automotive, defense, industrial valve, turbine blade, industrial process pump, power plant boiler parts, aerospace, earth moving machinery, engineering and automation, fire fighting equipment, structural hardware, and marine applications casting, Captain Technocast Limited was founded in Rajkot, Gujarat, India, in 2010. After the Board announced 1:1 bonus shares, Captain Technocast's shares concluded Wednesday's trading session on the BSE at Rs 584.95 a share, down 0.86%, with a market capitalization of Rs 679.13 Cr.

Captain Technocast Bonus Shares

"This is to inform you that the Board of Directors of the Company in its meeting held today i.e. on Tuesday, 18th March, 2025 started at 3:30 P.M and ended at 4:00 P.M. at the Registered Office of the Company inter alia, has considered the following, subject to the approval of Shareholders in ensuing Extra Ordinary General Meeting: - Issue of 1 (One) Bonus Shares for every 1 (One) Equity Shares held by the Equity Shareholders of the Company as on 'Record Date'. The Bonus Issue of Equity Shares is subject to the approval of the shareholders and other applicable statutory and regulatory approvals, as may be required. The Company will intimate the 'Record Date' for determining eligible Shareholders entitled to receive bonus shares, in due course of time. The Bonus Shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any dividend and either corporate action(s), recommended and declared after the issue and allotment of such Bonus Shares," said Captain Technocast in a stock exchange filing on Tuesday.

11610050 equity shares of face value of Rs.10/each are the total number of securities proposed to be issued or the total amount for which the securities will be issued (approximately) as a part of bonus shares.

The estimated date by which such bonus shares would be credited/dispatched is 16th May, 2025 and the record date for the purpose of the same will be announced in a separate exchange filing in due course of time.

The capitalization of free reserves will be used to accomplish this deal, thereby underscoring the company's sound financial standing. Because of this, the paid-up share capital will double from Rs 11.61 Cr, which is made up of 11,610,050 equity shares worth Rs 10 each, to Rs 23.22 Cr, which is made up of 23,220,100 equity shares worth Rs 10 each.

Captain Technocast Leverages Automation, Expansion & 1:1 Bonus To Cement Market Position

Mr Anil V. Bhalu, Managing Director of Captain Technocast Limited said, "We are delighted to announce this 1:1 bonus issue, a testament to our strong financial foundation and commitment to rewarding our valued shareholders. We are expanding our export business by leveraging our strong presence in Europe and America while scaling our valve production with automation-enabled products to meet rising industry demand. With increased production capacity and government incentives, we are enhancing our market position through innovation, operational efficiency, and global expansion. Our consistent growth and profitability empower us to take these strategic steps, reinforcing our commitment to delivering sustained value."

Captain Technocast Share Price Target

"Captain Technocast stock price is bullish on the Daily charts with strong support at 493. A Daily close above resistance of 606 could lead to a target of 681 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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