LKP Finance Limited, a well-known financial services company listed on the Bombay Stock Exchange (BSE), has announced a major corporate action that is expected to benefit its shareholders. The company has officially allotted bonus equity shares in the ratio of 4:1, a move that significantly increases the number of shares held by investors while expanding the company’s paid-up equity share capital.

The development was disclosed through an official filing submitted to the BSE under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the filing, the Board of Directors approved and completed the allotment of bonus shares on March 9, 2026, which has been considered the deemed date of allotment.

The corporate action reflects the company’s effort to reward existing shareholders and improve stock liquidity in the market.

Board Approves Allotment of Bonus Equity Shares

In its filing to the stock exchange, LKP Finance Limited confirmed that the Board of Directors convened a meeting on March 9, 2026, during which the allotment of bonus shares was formally completed.

The company issued 6,14,46,600 fully paid-up bonus equity shares with a face value of ₹10 per share.

The bonus shares were issued in the proportion of:

4:1 bonus ratio

This means that shareholders received four additional shares for every one existing share they held.

For example:

• If an investor held 100 shares, they received 400 additional bonus shares.

• After the bonus allotment, the investor would hold 500 total shares.

This type of corporate action does not require shareholders to invest additional money, as the shares are issued by capitalising the company’s reserves.

Record Date for Bonus Share Eligibility

To determine which investors would be eligible to receive the bonus shares, the company had earlier fixed March 6, 2026 as the record date.

On this date, the company examined the Register of Members and the Register of Beneficial Owners to identify eligible shareholders.

All investors whose names appeared in these registers as of the record date became entitled to receive the bonus equity shares.

The record date mechanism ensures transparency and fairness in the distribution of bonus shares among investors.

Paid-Up Capital Increases Significantly

One of the most notable outcomes of the bonus share allotment is the significant expansion in LKP Finance’s paid-up equity share capital.

Before the bonus issue, the company’s capital structure was as follows:

Pre-Allotment

• Number of shares: 1,53,61,650 equity shares

• Face value per share: ₹10

• Total paid-up capital: ₹15,36,16,500

After the allotment of bonus shares, the capital structure changed to:

Post-Allotment

• Number of shares: 7,68,08,250 equity shares

• Face value per share: ₹10

• Total paid-up capital: ₹76,80,82,500

This means the company’s share base has increased fivefold as a result of the 4:1 bonus issue.

While the number of shares increases significantly, the overall market value of investors’ holdings usually remains proportionally similar, as the share price typically adjusts after the bonus issue.

Why Companies Issue Bonus Shares

A bonus share issue is a corporate action in which a company distributes additional shares to its existing shareholders without requiring them to pay any additional amount.

Companies typically issue bonus shares for several reasons:

1. Rewarding Shareholders

One of the primary objectives is to reward long-term investors who have supported the company over time.

By issuing bonus shares, companies effectively increase the number of shares held by investors, giving them greater participation in the company’s future growth.

2. Improving Stock Liquidity

When the number of shares in circulation increases, trading volumes often rise, making the stock more liquid.

Higher liquidity can help attract more investors and improve market participation.

3. Optimising Share Price

Sometimes, a company’s share price becomes relatively high compared to market standards.

A bonus issue reduces the per-share price after adjustment, making the stock more affordable and attractive to retail investors.

4. Capitalising Reserves

Bonus shares are issued by capitalising accumulated reserves and profits, transferring them into share capital.

This does not affect the company’s cash position but changes the composition of the balance sheet.

Impact on Shareholders

For investors, bonus shares represent a non-cash benefit that increases the number of shares in their portfolio.

However, it is important to understand how the market adjusts after a bonus issue.

For example:

If the share price before the bonus issue was ₹500 per share, and the company announces a 4:1 bonus, the theoretical price may adjust to around ₹100 per share after the bonus allotment.

Although the per-share price decreases, the total value of the investor’s holdings remains largely unchanged initially.

Over time, the stock price may move depending on company performance, earnings growth, and market sentiment.

Compliance with SEBI Regulations

The announcement and allotment of bonus shares were made in accordance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Under Regulation 30, listed companies must disclose material events that could impact investors or the market.

Corporate actions such as bonus issues, stock splits, mergers, and dividend announcements are considered important disclosures.

By informing the stock exchange through a formal filing, LKP Finance ensured that all investors received equal access to the information.

Board Meeting Details

According to the official disclosure, the Board meeting held on March 9, 2026 was relatively brief.

• Meeting start time: 09:45 AM

• Meeting end time: 10:00 AM

During this meeting, the Board approved and completed the deemed allotment of bonus equity shares.

Once the allotment is completed, the shares are expected to be credited to investors’ demat accounts, subject to exchange procedures.

About LKP Finance Limited

LKP Finance Limited is a financial services company headquartered in Mumbai, India.

The company’s registered office is located at:

112-A / 203, Embassy Centre, Nariman Point, Mumbai – 400021

LKP Finance operates in the financial services and investment sector, offering various financial solutions and investment-related services.

The company is listed on the Bombay Stock Exchange (BSE) under the Scrip Code 507912.

Over the years, the company has been involved in activities such as:

• Investment and financial services

• Capital market operations

• Financial advisory and related services

As a listed entity, the company regularly communicates with investors through stock exchange filings and regulatory disclosures.

Market Reaction and Investor Sentiment

Bonus share announcements are often viewed positively by the market because they signal confidence from the company’s management regarding future growth prospects.

When a company decides to issue bonus shares, it typically indicates that the company has:

• Strong reserves

• Healthy financial position

• Confidence in long-term performance

Investors generally interpret such moves as a shareholder-friendly corporate action.

However, the final market reaction depends on several factors, including:

• Overall market conditions

• Company earnings performance

• Sector outlook

• Investor sentiment

Bonus Issue Trends in the Indian Stock Market

In recent years, several Indian companies have issued bonus shares to reward investors and improve market participation.

Popular companies across sectors such as IT, manufacturing, pharmaceuticals, and financial services have used bonus issues as part of their capital management strategy.

Bonus issues are particularly attractive for long-term investors, as they increase shareholding without requiring additional investment.

What Investors Should Watch Next

Following the bonus share allotment, investors will now watch several developments related to LKP Finance.

Key aspects include:

1. Listing of the new bonus shares on stock exchanges

2. Credit of shares to demat accounts

3. Stock price adjustment after the bonus issue

4. Future financial performance of the company

Investors often evaluate whether the company can continue delivering earnings growth that supports the expanded share capital.

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