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Sat, 05 Sept 2026
07:52:22 am
Sat, 05 Sept 2026
07:52:22 am
Synopsis
Hardwyn India announced a 2:5 bonus issue, offering 2 free shares for every 5 held. The company will also increase authorized capital to ₹70 crore and plans to issue 19.54 crore bonus shares.
Building hardware manufacturer Hardwyn India has announced a 2:5 bonus share issue, rewarding shareholders with two additional shares for every five shares held. Alongside the bonus proposal, the company plans to increase its authorized share capital from ₹50 crore to ₹70 crore, signaling confidence in future growth and expansion plans.
| Particulars | Details |
|---|---|
| Company | Hardwyn India Limited |
| Bonus Ratio | 2:5 |
| Bonus Entitlement | 2 Shares for Every 5 Held |
| New Shares to be Issued | Approx. 19.54 Crore |
| Source of Bonus Shares | Free Reserves & Retained Earnings |
| EGM Date | July 3, 2026 |
| Cut-Off Date for Voting | June 26, 2026 |
| Expected Bonus Credit | By August 4, 2026 |
| Record Date | Yet to be Announced |
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Hardwyn India Limited has announced a bonus share issue in the ratio of 2:5, offering existing shareholders two additional equity shares for every five shares currently held.
The proposal reflects management's confidence in the company's growth trajectory and comes amid improving business performance and strong investor interest in the stock.
Bonus issues are often viewed positively by the market because they signal management's willingness to reward shareholders while maintaining confidence in future earnings and expansion opportunities.
Under the approved proposal, investors will receive two additional shares at no extra cost for every five shares they own on the record date.
| Existing Shares Held | Bonus Shares Received | Total Shares After Bonus |
|---|---|---|
| 5 | 2 | 7 |
| 50 | 20 | 70 |
| 100 | 40 | 140 |
| 500 | 200 | 700 |
| 1,000 | 400 | 1,400 |
The bonus shares will be issued through capitalization of the company's free reserves and retained earnings.
Alongside the bonus issue, Hardwyn India has approved an increase in its authorized share capital.
| Particulars | Existing | Proposed |
|---|---|---|
| Authorized Share Capital | ₹50 Crore | ₹70 Crore |
| Face Value Per Share | ₹1 | ₹1 |
| Authorized Shares | 50 Crore Shares | 70 Crore Shares |
| Increase | - | ₹20 Crore |
The increase in authorized capital will provide the company with sufficient headroom to accommodate the bonus share issuance and future capital requirements.
The company will utilize accumulated reserves to issue the bonus shares.
| Particulars | Amount |
|---|---|
| Free Reserves & Retained Earnings (FY26) | ₹19.65 Crore |
| Proposed Bonus Shares | 19.54 Crore Shares |
| Funding Source | Internal Reserves |
Since bonus shares are issued from reserves, shareholders do not need to make any payment to receive the additional shares.
| Event | Date |
|---|---|
| Board Approval | Announced |
| Cut-Off Date for Voting | June 26, 2026 |
| Extraordinary General Meeting | July 3, 2026 |
| Shareholder Approval | Subject to EGM |
| Record Date | To Be Announced |
| Expected Bonus Credit | By August 4, 2026 |
Investors should monitor the company's upcoming announcement regarding the record date, as eligibility for bonus shares will depend on shareholding on that date.
Bonus shares do not increase the intrinsic value of an investor's holdings immediately. However, they can improve market liquidity and increase retail participation.
| Benefit | Impact |
|---|---|
| Increased Liquidity | Positive |
| Improved Retail Participation | Positive |
| Shareholder Reward | Positive |
| Confidence Signal | Strong |
| Trading Affordability | Improved |
Companies generally announce bonus issues when they possess strong reserves and expect continued business growth.
| Parameter | Before Bonus | After Bonus |
|---|---|---|
| Shares Outstanding | Existing Base | Increased |
| Share Price | Current Market Price | Adjusted |
| Ownership Percentage | Unchanged | Unchanged |
| Market Capitalization | Same | Same |
While the number of shares increases, the overall value of an investor's holding remains unchanged immediately after the adjustment.
Hardwyn India operates in the architectural and furniture hardware industry.
| Segment | Products |
|---|---|
| Kitchen Hardware | Modular Kitchen Solutions |
| Door Hardware | Handles, Locks & Accessories |
| Glass Hardware | Glass Fittings |
| Sliding Systems | Sliding Door Solutions |
| Wardrobe Solutions | Furniture Hardware |
The company caters to residential, commercial, real estate, and interior infrastructure projects across India.
India's building materials and architectural hardware industry continues to benefit from multiple structural growth drivers.
| Driver | Impact |
|---|---|
| Real Estate Growth | Strong |
| Housing Demand | Positive |
| Renovation Market | Growing |
| Infrastructure Spending | Supportive |
| Premium Home Segment | Expanding |
| Urbanization | Long-Term Positive |
These trends continue supporting demand for hardware, fittings, and architectural solutions.
Anand Rathi Investment Services has selected Hardwyn India as its "Pick of the Month."
| Indicator | Observation |
|---|---|
| 20-DEMA | Near Support Zone |
| DMI Indicator | Positive |
| ADX | 32 |
| Trend Strength | Strong |
| Parameter | Value |
|---|---|
| Accumulation Zone | ₹24.50 – ₹25.50 |
| Stop Loss | ₹22.50 |
| Target Price | ₹30 |
| Potential Upside | Approximately 23% |
The brokerage believes the stock's technical setup remains constructive despite recent short-term weakness.
Although the stock has seen some consolidation in recent weeks, its broader trend remains strong.
| Period | Return |
|---|---|
| Intraday | -1% |
| 5 Days | -4% |
| 1 Month | -2% |
| YTD 2026 | 44%+ |
| Factor | Assessment |
|---|---|
| Short-Term Momentum | Weak |
| Medium-Term Trend | Positive |
| YTD Performance | Strong |
| Investor Sentiment | Constructive |
The strong year-to-date performance indicates sustained investor confidence despite recent volatility.
The bonus issue comes at a time when the company is focusing on business expansion and strengthening its market position.
| Benefit | Impact |
|---|---|
| Improved Share Liquidity | High |
| Broader Retail Participation | Positive |
| Shareholder Engagement | Positive |
| Corporate Visibility | Enhanced |
| Market Confidence | Strengthened |
The move may also attract increased investor attention due to the lower post-bonus adjusted share price.
| Positive Factors |
|---|
| 2:5 Bonus Issue |
| Strong Reserve Position |
| Capital Expansion Plan |
| Positive Industry Outlook |
| Strong YTD Returns |
| Brokerage Support |
| Risk Factors |
|---|
| Real Estate Slowdown |
| Construction Demand Weakness |
| Margin Pressure |
| Raw Material Cost Inflation |
| Market Volatility |
Hardwyn India's proposed 2:5 bonus issue represents a significant shareholder reward initiative and reflects management's confidence in the company's long-term growth prospects.
The increase in authorized share capital from ₹50 crore to ₹70 crore, coupled with the issuance of approximately 19.54 crore bonus shares, highlights the company's intent to strengthen liquidity and broaden investor participation.
While bonus shares do not create immediate value by themselves, they are often viewed as a signal of financial strength and optimism regarding future business performance.
Combined with favorable industry dynamics, strong year-to-date stock returns, and positive brokerage commentary, Hardwyn India remains a stock that investors are likely to watch closely over the coming months as the bonus issue process moves toward completion.
Hardwyn India Limited is a leading manufacturer and supplier of architectural hardware products including door hardware, kitchen fittings, wardrobe systems, sliding solutions, and glass hardware.
The company serves residential, commercial, and infrastructure markets across India and has built a diversified product portfolio catering to modern construction and interior design requirements.
| Particulars | Details |
|---|---|
| Company Name | Hardwyn India Limited |
| Industry | Building Materials & Hardware |
| Product Segments | Kitchen, Door, Glass & Wardrobe Hardware |
| Market Presence | India |
| Core Focus | Architectural Hardware Solutions |
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The company announced a bonus issue in the ratio of 2:5.
Shareholders will receive 2 bonus shares for every 5 shares held.
The Extraordinary General Meeting is scheduled for July 3, 2026.
No, the record date has not yet been announced.
Approximately 19.54 crore new shares are expected to be issued.
The authorized share capital is being increased to facilitate the bonus issue and future capital requirements.
The brokerage has set a target price of ₹30 per share.
The stock has delivered more than 44% returns year-to-date in 2026.
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