LKP Finance to issue 4:1 bonus shares and expand authorised capital following board approval

LKP Finance Limited has cleared a large stock bonus and capital change that could reshape its equity profile. After a Board meeting on January 19, 2026, the company detailed plans for a 4:1 bonus share issue, a sharp rise in paid-up capital, and a bigger authorised capital base.

The Board recorded that it had "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," in a stock exchange communication. For every existing fully paid-up equity share on the record date, investors are therefore scheduled to receive four new equity shares, each carrying a face value of Rs 10.

Based on the official declaration, LKP Finance intends to issue about 6.14 crore bonus equity shares, aggregating to Rs 61.44 crore in face value terms. The company stated that these new shares would be created by capitalising the Securities Premium Account, subject to shareholder consent, rather than using operating cash.

Before the proposed bonus issue, LKP Finance had paid-up equity share capital of Rs 15.36 crore. This was split across nearly 1.54 crore equity shares. After the bonus allotment, the paid-up equity capital is projected to jump to approximately Rs 76.81 crore, with the total equity share count rising to nearly 7.68 crore.

Key figures linked to the LKP Finance restructuring are shown below for clarity. The figures are based on details shared after the January 19, 2026 Board meeting.

Metric	Before bonus issue	After bonus issue (proposed)
Paid-up equity share capital (Rs)	15.36 crore	76.81 crore
Number of equity shares	About 1.54 crore	About 7.68 crore
Number of bonus equity shares	Not applicable	About 6.14 crore
Face value per share	Rs 10	Rs 10

The company noted that the bonus distribution will be financed entirely from reserves. Management highlighted that the Securities Premium Account stood at over Rs 126.59 crore, based on unaudited financial statements for the period ended December 31, 2025. This reserve level indicates sufficient internal resources for the proposed bonus issue.

Alongside the bonus proposal, the Board also backed a large increase in authorised share capital. LKP Finance plans to lift its authorised capital from Rs 30 crore to Rs 110 crore. This move, which also needs shareholder approval, is intended to support the enlarged equity structure following the bonus issue.

LKP Finance bonus issue approvals and timeline

To obtain shareholder consent, the Board cleared a Postal Ballot notice covering the bonus issue and authorised capital change. M/s Abhay K & Associates, Company Secretaries, has been appointed as scrutiniser for this Postal Ballot. The firm is tasked with overseeing the voting process and ensuring compliance with SEBI and company law requirements.

The company informed exchanges that the credit or dispatch of bonus equity shares is expected within two months from the Board decision date. LKP Finance therefore aims to complete the bonus allotment on or before March 19, 2026, subject to all necessary shareholder and regulatory approvals being in place.

LKP Finance bonus issue and stock price outlook

Alongside the corporate actions, market participants are tracking the share price trend. "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.

The company stated that its actions comply with SEBI laws and aim to enhance shareholder value through a wider equity base and higher authorised capital. The disclaimer accompanying the analyst view stressed that the opinions and recommendations belong to the individual analysts or entities and not to Goodreturns.in or Greynium Information Technologies Private Limited, jointly referred to as "we". It also underlined that no investment advice is being offered, that accuracy and completeness are not guaranteed, and that investors should rely on licensed financial advisers and independent checks before taking any investment decisions.