4:1 Bonus Shares: NBFC stock in focus after Board approves bonus issue

SYNOPSIS:
Board of Authum Investment & Infrastructure approved a 4:1 bonus issue, increasing paid-up capital to 84.92 crore shares, and raised authorised share capital to Rs. 128 crore, with bonus shares issued from available reserves.

During Monday’s trading session, shares of a registered NBFC involved in long-term equity investment across listed, unlisted and strategic investments are in focus on the stock exchanges, after the Board of the company approved a bonus issue in the 4:1 ratio.

At 11:00 a.m., the shares of Authum Investment & Infrastructure Limited were trading at Rs. 2,665 on BSE, as against its previous closing price of Rs. 2,710.85, with a market cap of Rs. 45,264 crores. The stock has delivered positive returns of more than 17,362 percent in the last five years, and has gained by around 41 percent YTD.

What’s the News

As per the latest disclosures to the stock exchanges, the Board of Directors of Authum Investment & Infrastructure Limited, at its meeting held on 28th November 2025, approved a bonus issue in the ratio of 4:1.

This means that the eligible shareholders will receive 4 new fully paid-up equity shares of Re. 1 each for every one existing fully paid-up equity share held as on the record date. The issuance is subject to shareholders’ approval via postal ballot, along with all necessary regulatory and statutory clearances. The record date for determining eligible shareholders will be announced separately.

The company plans to issue approximately 67.94 crore new equity shares of face value Re. 1 each. Following the bonus issuance, the paid-up equity share capital will increase from 16.98 crore shares to 84.92 crore shares. The bonus shares will be issued out of the company’s free reserves, securities premium account, or capital redemption reserve balance as of 30th September 2025.

In conjunction with the bonus announcement, the Board has also approved an increase in the company’s authorised share capital from Rs. 100 crore to Rs. 128 crore, along with corresponding amendments to the Memorandum of Association. Shareholder approval for both proposals will be sought through a postal ballot, with the e-voting period scheduled from 2nd December to 31st December 2025.

Financials & More

Authum Investment reported a decline in revenue from operations, experiencing a year-on-year decrease of around 45 percent, from Rs. 1,093 crores in Q2 FY25 to Rs. 605 crores in Q2 FY26. Likewise, the company’s net profit decreased during the same period, from Rs. 843 crores to Rs. 767 crores, reflecting a fall of nearly 9 percent YoY.

For Q2 FY26, the company reported total segment revenue of Rs. 608.85 crore. Investment activity contributed Rs. 342 crore, accounting for 56 percent of total revenue, while lending activity generated Rs. 257 crore, contributing 42 percent. The rental business added Rs. 4 crore (0.7 percent), and the ARC segment contributed nearly Rs. 6 crore (1 percent).  Overall, the revenue mix remains heavily dominated by the investment and lending segments, which together comprise over 98 percent of quarterly revenue.

Authum Investment and Infrastructure Limited is a non-deposit-taking Systemically Important Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). It is primarily engaged in the business of providing loans and making investments/trading in shares and securities, credit & alternative asset business, and rental activities.

Written by Shivani Singh

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