Bonus Issue of Shares: Welcure Drugs & Pharmaceuticals Ltd

Welcure Drugs & Pharmaceuticals Ltd has announced a bonus issue of equity shares, reaffirming its dedication to rewarding shareholders and enhancing market participation. The company will issue one (1) bonus equity share of ₹1 face value for every ten (10) existing equity shares of ₹1 face value held, following a stock split from ₹10 to ₹1 per share.

This move increases the total number of shares held by investors while maintaining the same overall investment value, as the share price will adjust proportionally to the bonus allotment ratio. The bonus issue reflects the company’s commitment to long-term shareholder value and improved market liquidity.

Key Details of the Bonus Issue

The record date to determine eligible shareholders has been fixed as October 16, 2025. Investors holding shares of Welcure Drugs & Pharmaceuticals Ltd as of this date will automatically receive bonus shares in the ratio of 1:10.

Initially, the company had informed that 1,12,35,820 bonus equity shares of ₹10 each would be allotted pre-split. However, following the stock split from ₹10 to ₹1, the company has revised the allotment to 11,23,58,200 bonus equity shares of ₹1 each.

This corporate action emphasizes the company’s focus on maintaining an optimal capital structure while providing shareholders with enhanced participation in the company’s equity base.

Example: Impact on Your Welcure Holdings

1. If you hold 1,000 shares, your total holding will increase to 1,100 shares, as you’ll receive 100 bonus shares.

2. If you hold 14,000 shares, your total holding will increase to 15,000 shares, with 1,000 bonus shares added to your portfolio.

    

Although the share price will adjust according to the 1:10 ratio, your total investment value will remain unchanged, ensuring there is no dilution of wealth.

What is a Bonus Issue?

A bonus issue is a corporate action in which a company distributes additional shares to its existing shareholders at no extra cost, by capitalizing its reserves or retained earnings. This move reflects the company’s strong financial position and demonstrates management’s confidence in future growth, while rewarding shareholders for their long-term commitment.

In this scenario, the stock split carried out prior to the bonus issue reduces the face value per share, making the stock more affordable and encouraging greater market participation among investors.

Conclusion

The bonus issue by Welcure Drugs & Pharmaceuticals Ltd marks a positive step towards enhancing shareholder value and improving market liquidity. The company’s decision underscores its robust financial foundation, investor-centric approach, and long-term growth vision.

This initiative not only strengthens investor confidence but also reflects the management’s focus on sustained value creation and broader market engagement.