1:2 Split and 3:1 Bonus Issue: Stock jumps 5% after board approves split and bonus shares

Synopsis: Gautam Exim Limited approved a 1:2 stock split and a 3:1 bonus issue, increasing the number of shares, improving liquidity, and making shares more affordable for investors.

This Micro-cap Stock, engaged in trading and distribution of textile and garment products, focusing on sourcing, exports, and serving domestic and international markets, jumped 4.53 percent after the company approved a 1:2 stock split and a 3:1 bonus issue in its Extraordinary General Meeting.

With a market capitalization of Rs. 102.29 crores, the share of Gautam Exim Limited has reached an intraday high of Rs. 338 per equity share, rising nearly 4.53 percent from its previous day’s close price of Rs. 323.35. Since then, the stock has retreated and is currently trading at Rs. 332 per equity share. 

Reason Behind the Surge

Gautam Exim Limited, in its Extraordinary General Meeting held on Thursday, April 30, 2026, approved a 1:2 stock split and a 3:1 bonus issue of equity shares. These corporate actions are aimed at making the company’s shares more affordable for investors, improving liquidity in the market, and encouraging wider participation among retail and new investors.

The company has decided to issue a stock split at a ratio of 1:2, meaning that each equity share’s face value of Rs. 10 will be divided into two equity shares with a share value of Rs. 5 each.

For example, if a shareholder owns 1,000 shares valued at Rs. 10 each in Gautam Exim Limited, after the 1:2 stock split, their total holding will increase to 2,000 shares with a face value of Rs. 5 each. The value of the holding will remain unchanged.

Additionally, the company has also decided to issue bonus shares at a ratio of 3:1, meaning that shareholders will receive three new fully paid-up equity shares of Rs. 5 each for every one existing fully paid-up equity share they hold. 

For example, if a shareholder owns 2,000 shares of Gautam Exim Limited, they will receive 6,000 bonus shares, bringing their total holding to 8,000 shares after the 3:1 bonus issue

Company Overview

Gautam Exim Limited was founded in 2005 and is an Indian trading and manufacturing company primarily engaged in the import and export of paper, pulp, and related recyclable materials. Based in Gujarat, it plays a key role in India’s supply chain for secondary fiber and sustainable raw materials used by the paper and packaging industries.

The company specializes in importing waste paper, pulp, and stock lots of paper to serve Indian paper mills. It also exports finished kraft paper and related products to global markets. The company’s operations support circular economy initiatives by promoting the recycling and reuse of paper-based materials.

Recent Quarter Results

Coming into financial highlights, Gautam Exim Limited’s revenue has decreased from Rs. 21.08 crore in H1 FY25 to Rs. 17.86 crore in H1 FY26, which is a drop of 15.28 percent. The net profit has also decreased by 50 percent from Rs. 0.04 crore in H1 FY25 to Rs. 0.02 crore in H1 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at 3.11 percent and 0.98 percent, respectively. Gautam Exim Limited has an earnings per share (EPS) of Rs. 0.36, and its debt-to-equity ratio is 0.06x.

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