Bonus Issue of Shares: Autoriders International Ltd

Autoriders International Ltd has announced a bonus issue of equity shares, reinforcing its commitment to enhancing shareholder value and broadening market participation. The company will issue five (5) bonus equity shares of ₹10 face value for every one (1) existing equity share of ₹10 face value held, as per the details released by the exchange.

This bonus issue substantially increases the number of shares held by investors while keeping the total investment value economically unchanged, as the share price will adjust proportionately to the 5:1 bonus ratio. The move reflects the company’s strategic focus on rewarding shareholders and improving stock liquidity.

Key Details of the Bonus Issue

The company has informed that 29,00,700 bonus equity shares will be allotted on November 19, 2025, in accordance with the bonus ratio of 5:1.

This corporate action demonstrates the company’s intention to strengthen its capital structure while ensuring shareholders benefit from increased equity participation.

Example: Impact on Your Autoriders Holdings

• If you hold 100 shares, your total holding will rise to 600 shares, as you will receive 500 bonus shares.

• If you hold 1,000 shares, your total holding will increase to 6,000 shares, with 5,000 bonus shares added to your portfolio.

While the market price will adjust downward to reflect the 5:1 bonus ratio, your total investment value remains unchanged, ensuring no dilution in overall wealth.

What is a Bonus Issue?

A bonus issue is a corporate action in which a company issues additional shares to existing shareholders at no extra cost by converting its free reserves into share capital. This action signifies financial strength, increases the number of outstanding shares, enhances liquidity, and rewards investors for their long-term commitment.

In this case, the bonus ratio of 5:1 significantly expands the shareholder base and creates room for improved market trading volumes.

Conclusion

The bonus issue announced by Autoriders International Ltd marks a proactive move towards enriching shareholder value and fostering long-term market engagement. It underscores the company’s confidence in its financial trajectory and highlights management’s intention to create sustained value for its investors.

This initiative is expected to boost investor confidence while strengthening overall market participation in the company’s equity.