7:5 Bonus Issue: Watch Manufacturing Stock in Focus After Announcing Bonus Shares

Synopsis: The company’s shares are in focus after it announced a bonus issue worth ₹6.85 crore in the ratio of 7:5, to be allotted to shareholders whose names appear on the record date, which will be announced later.

The shares of this company, which is engaged in manufacturing and importing wrist watches under various brand names, with distribution across many retail stores in the country, gained investor attention with this bonus issue, pending board approval.

With a market capitalization of Rs 883 crores, Foce India Ltd’s shares on Thursday made a day low of Rs 1,805 per share, down by 5 percent from its previous day’s close price of Rs 1,900 per share. The shares trade at a P/E of 66.2x, more than double the average industry P/E.

Bonus Issue details

Foce India Limited has announced a significant bonus issue of equity shares following its Board Meeting held on 7th January 2026. The company will issue seven fully paid-up equity shares of Rs 10 each for every five shares currently held by shareholders. This translates into a total of 68,50,095 new shares being issued, amounting to Rs 6.85 crore. 

The bonus shares will be allotted out of the company’s securities premium account and/or free reserves, ensuring compliance with SEBI regulations. The company has confirmed that the bonus shares will be credited within two months from the date of Board approval.

Before the bonus issue, the company’s issued and paid-up capital stood at Rs 4.89 crore, represented by 48,92,925 shares. Following the bonus issue, this figure is expected to increase substantially to Rs 11.74 crore, with the total number of shares rising to 1,17,43,020. The authorised capital remains unchanged at Rs 12 crore. 

The reserves available for capitalization, as per the audited balance sheet dated March 31, 2025, include Rs 1,953.68 lakh in securities premium and Rs 1,201.31 lakh in surplus from the profit and loss account.

About the company

Established in the 1980s as a Mumbai retail shop, Foce India Limited (formerly Heighten Trading) has evolved into a horology leader. For three decades, the company has manufactured and imported mid-range wristwatches, building an extensive national retail network and a prestigious corporate clientele across India.

Financial Highlights: revenue from operations grew by 73.5 percent to Rs 59 crore in H1 FY26, corresponding to the same half-yearly period in the last financial year. Accompanied by Net profit declined by 14.2 percent YoY to Rs 6 crore in H1 FY26, resulting in an EPS of Rs 11.87 per share in the same time period.

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