Utssav CZ Gold Jewels Board Approves 1:1 Bonus Issue and Capital Increase

Utssav CZ Gold Jewels has announced that its board of directors has approved a proposal to issue bonus shares in a 1:1 ratio. The company operates as a manufacturer, wholesaler, and exporter specializing in lightweight cubic zirconia and gold casting jewellery.

Under the proposed issuance, eligible shareholders will receive one bonus share of face value ₹10 for every existing share held. The transaction will comprise a total of 2,49,98,000 bonus shares. These shares will be funded from the company's securities premium reserve, free reserves, and retained earnings available as of March 31, 2026.

If approved by shareholders and regulatory authorities, the issuance will increase the company’s paid-up equity share capital from ₹25 crore to ₹50 crore. Concurrently, the total number of shares will rise from 2,49,98,000 to 4,99,96,000. The company expects the bonus shares to be credited within 60 days of board approval, pending statutory and regulatory clearances.

In addition to the bonus issue, the board approved an increase in the company’s authorised share capital from ₹25 crore to ₹60 crore. This expanded capital will be divided into six crore shares of ₹10 each. The increase is intended to facilitate the expansion of the paid-up share capital and will require a subsequent alteration to the capital clause of the Memorandum of Association, also subject to shareholder approval.

Utssav CZ Gold Jewels stated that it will announce the record date for determining eligibility and other relevant details in due course once all necessary approvals are secured. On the market front, shares of the company closed marginally lower by 0.52 per cent at ₹1,014 on Friday.

"Corporate actions like 1:1 bonus issues and increases in authorized share capital are strategic steps used by companies to expand their equity base and improve stock liquidity. By capitalizing reserves to issue new shares, businesses signal internal confidence while making shares more accessible to a broader base of investors. However, investors should closely monitor the regulatory timelines and final approvals required to complete these capital restructuring exercises." — Dr. Shishir Gupta, Founder & CEO, StartupLanes