4:1 Bonus Issue: Micro cap stock in focus after board sets record date for bonus shares

Synopsis: CWD Limited sets Friday, January 02, 2026, as the record date to allot 4:1 bonus shares, granting four new shares of Rs. 10 for every one share held.

This Micro-cap stock, engaged in designing, developing, manufacturing and selling integrated IoT solutions combining software and electronics for several industries, is in focus after the company’s board set a record date for a 4:1 bonus issue.

With a market capitalization of Rs. 838.56 crores, the share of CWD Limited has reached an intraday high of Rs. 1,914 per equity share, rising nearly 1.16 percent from its previous day’s close price of Rs. 1,892.05. Since then, the stock has retreated and is currently trading at Rs. 1,908 per equity share.

Reason Behind the Surge:

CWD Limited’s Board of Directors has fixed Friday, January 02, 2026, as the Record Date for determining the eligibility of shareholders for the allotment of Bonus Equity Shares.

The board has decided to issue bonus shares at a ratio of 4:1, meaning that shareholders will receive four new fully paid-up equity shares of Rs. 10 each for every one existing fully paid-up equity share they hold, as approved by the shareholders.

For example, if a shareholder owns 1,000 shares of CWD Limited, they will receive 4,000 bonus shares, bringing their total holding to 5,000 shares after the 4:1 bonus issue. 

Company Overview:

CWD Limited was incorporated as CWD Innovation Private Limited on May 30, 2016, in Mumbai, and later its name was changed to CWD Limited. It is an Indian information and communication technology company that designs, develops, manufactures and sells integrated solutions combining software and electronics, with a focus on wireless and IoT technologies. 

The company has received total orders of 2.1 million units with an aggregate order value of Rs. 172 crore. Of this, orders worth Rs. 37.6 crore have already been delivered, while the remaining order book provides strong revenue visibility and supports continued business growth in the coming periods.

Recent Quarter Results:

Coming into financial highlights, CWD Limited’s revenue has increased from Rs. 6.97 crore in H1 FY25 to Rs. 41.15 crore in H1 FY26, which has grown by 490.39 percent. The net profit of the company has converted from negative to positive,  from a net loss of Rs. 1.83 crore in H1 FY25 to a net profit of Rs. 4.19 crore in H1 FY26.

CWD Limited’s revenue and net profit have grown at a CAGR of 61.23 percent and 37.54 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 9.51 percent and 5.78 percent, respectively. CWD Limited has an earnings per share (EPS) of Rs. 20.9, and its debt-to-equity ratio is 0.59x.

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