Gee Limited, one of India’s well-known listed companies, has taken a significant step toward rewarding its shareholders by announcing a 1:1 bonus issue. This development was officially confirmed through an intimation sent to the BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company informed that in its Board Meeting held on October 06, 2025, the directors approved the allotment of 2,59,88,466 Bonus Equity Shares of face value Rs. 2 each, in the ratio of 1:1, meaning one new fully paid-up equity share for every existing share held by eligible shareholders. This move marks another milestone in the company’s efforts to strengthen investor confidence and reward long-term stakeholders.

Background and Board Decision

The Board Meeting, which commenced at 09:15 AM (IST) and concluded at 09:30 AM (IST) on October 06, 2025, was primarily convened to finalize the bonus issue allotment. This decision was made following earlier communications dated August 29, 2025, September 16, 2025, and September 27, 2025, where the company had indicated the proposal to issue bonus shares.

As per the company’s notice, the bonus shares have been issued to all eligible shareholders whose names appeared in the Register of Members or the Register of Beneficial Owners as on Friday, October 03, 2025, which was the record date fixed for the purpose.

This 1:1 ratio allotment implies that for every existing fully paid-up equity share of Rs. 2, the shareholders will receive one additional fully paid-up equity share of Rs. 2, thereby doubling the number of shares held while maintaining the total proportional ownership.

Impact on Share Capital

Following the allotment, the paid-up share capital of Gee Limited has now increased from Rs. 5,19,76,932 to Rs. 10,39,53,864, divided into 5,19,76,932 fully paid-up equity shares of face value Rs. 2 each.

This effectively means the company’s overall equity base has doubled, a move that reflects strong financial reserves and management confidence in future growth prospects. Such actions often enhance market sentiment and attract new investors who see bonus issues as a sign of corporate strength and goodwill toward shareholders.

The newly allotted bonus shares will be made available for trading from October 07, 2025, meaning investors can see the updated share count reflected in their demat accounts and the stock exchanges from that date onwards.

Understanding Bonus Shares

A bonus share issue is a way for companies to reward their shareholders without affecting their cash reserves. It is essentially a conversion of the company’s accumulated profits or reserves into additional equity capital. When a company issues bonus shares, it capitalises a portion of its free reserves to distribute additional shares to existing shareholders in proportion to their current holdings.

For Gee Limited, the 1:1 bonus issue signifies that every investor holding 100 shares will now have 200 shares post-allotment. While the total value of investment remains constant initially, the move enhances liquidity and market participation as more shares become available for trading.

Reasons Behind the Bonus Issue

Companies usually announce bonus issues for several strategic reasons, including:

• Rewarding existing shareholders: Gee Limited’s decision reinforces its commitment to shareholders who have supported the company over the years.

• Improving market liquidity: The issuance increases the number of outstanding shares, making it easier for investors to trade the stock.

• Signaling confidence in financial strength: The bonus issue often indicates that the company has strong reserves and expects continued profitability.

• Attracting new investors: A lower per-share price post-bonus can make the stock more attractive to new retail investors.

Gee Limited’s strong performance and financial stability have made this an opportune moment to declare a bonus issue, reflecting both confidence in growth and a shareholder-friendly approach.

Shareholder Eligibility and Record Date

The record date, set as October 03, 2025, played a key role in determining which shareholders were eligible to receive the bonus shares. Investors who held Gee Limited’s shares as on that date will receive the additional shares automatically in their demat accounts.

The bonus equity shares will be pari-passu with the existing shares, which means they will enjoy the same rights and privileges — including voting rights, dividend eligibility, and participation in any future corporate actions.

Such parity ensures equal treatment of all shareholders, reinforcing fairness and transparency in the company’s equity management practices.

Regulatory Compliance and SEBI Guidelines

The company’s filing under Regulation 30 of the SEBI Listing Regulations confirms that the entire process has been carried out in compliance with regulatory norms. Bonus issues require board approval, disclosure to stock exchanges, and in some cases, shareholder consent depending on the company’s Articles of Association and capital structure.

By making this public disclosure, Gee Limited has demonstrated adherence to corporate governance standards and SEBI’s transparency framework, which is designed to ensure that all investors have timely access to important information.

Market Reaction and Investor Sentiment

Bonus share announcements are generally perceived positively in the stock market as they reflect management’s optimism about the company’s financial health. Investors often view such actions as a signal of future profitability and robust performance.

In the case of Gee Limited, the 1:1 bonus issue indicates that the company has sufficient free reserves and retained earnings, enabling it to issue additional shares without straining liquidity.

Analysts expect this move to potentially increase trading volumes and broaden the shareholder base, which may also enhance market capitalization in the medium term.

Financial Implications

From a financial perspective, issuing bonus shares does not impact the company’s net worth but changes the structure of the shareholders’ equity. It transfers a portion of retained earnings or free reserves to the share capital account, thus maintaining balance sheet integrity.

However, it can lead to a temporary price adjustment in the stock market, as the per-share price is generally adjusted to reflect the increased number of shares. For instance, if the stock was trading at Rs. 400 before the bonus issue, it might adjust to Rs. 200 post-issue due to the doubling of shares.

Nonetheless, the total investment value of each shareholder remains the same, while the number of shares held doubles, thereby improving liquidity and long-term potential gains.

Trading and Listing of Bonus Shares

As stated in the company’s disclosure, the bonus shares will be available for trading starting October 07, 2025. This means investors will start seeing the adjusted share price and increased holdings reflected on the BSE platform from that date onwards.

The shares will continue to trade under the same Scrip Code: 504028, ensuring smooth transition and no disruption in market operations.

Conclusion

The 1:1 bonus issue by Gee Limited represents a well-planned and strategic move to enhance shareholder value, strengthen market participation, and demonstrate financial stability.

By doubling the number of outstanding shares while maintaining proportional ownership, the company has effectively signaled confidence in its performance and outlook.

For existing shareholders, this translates into higher liquidity, potential for long-term appreciation, and reaffirmation of the management’s commitment to rewarding investors.

The move not only boosts investor sentiment but also aligns with the broader trend of corporate India focusing on value creation and transparency. With trading in the new shares beginning October 07, 2025, Gee Limited’s decision is expected to generate renewed interest among market participants and reinforce the company’s position as a reliable and growth-oriented entity in the Indian stock market.

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