Shilchar Technologies Limited, a prominent player in its industry, convened a Board meeting on April 21, 2025, to discuss and approve several key developments for the financial year 2024-25. The meeting, which was held from 12:30 PM to 2:15 PM, focused on the company’s performance for the financial year, dividends, and bonus issues, providing stakeholders with a comprehensive overview of its future plans.

Final Dividend Declared

The Board approved a final dividend of 125%, amounting to ₹12.50 per equity share of ₹10 each, which will be subject to the approval of shareholders at the upcoming Annual General Meeting. This dividend comes on the heels of Shilchar's solid performance over the past year, reflecting a strong financial position.

Bonus Issue Proposal

In another significant move, Shilchar Technologies announced the recommendation of a bonus issue of equity shares in the ratio of 2:1, i.e., one new fully paid-up equity share for every two existing fully paid-up equity shares held by the eligible shareholders. The bonus issue will be executed by capitalizing the company’s free reserves, as outlined in the annexed financial details. This is expected to increase the total number of paid-up equity shares and will be subject to shareholders' approval via a postal ballot process, details of which will be communicated in due course.

Audited Financial Results

The Board also reviewed and approved the audited financial results for FY 2024-25, which have been certified by the statutory auditors with an unmodified opinion. These results reflect the continued growth and stability of the company and serve as the foundation for its strategic expansion plans. The detailed financials underscore Shilchar Technologies' robust position within the industry.

Details of Bonus Issue and Capitalization

• Bonus Ratio: 2:1 — shareholders will receive 1 bonus share for every 2 shares held.

• Share Capital:

  • Pre-bonus issue: ₹7.62 crore

  • Post-bonus issue: ₹11.44 crore

• Free Reserves: The bonus will be issued from the free reserves, with estimated reserves standing at ₹3.81 crore, ensuring ample capital for the bonus distribution.

• Timeline for Credit/Dispatch: Subject to necessary approvals, the bonus shares will be credited or dispatched by June 20, 2025.

The company’s free reserves and the share premium account will be utilized for this issuance. The process is in line with Shilchar Technologies' commitment to rewarding its shareholders and fostering long-term growth.

Postal Ballot Process

Further developments will follow through a Postal Ballot, with the notice and record date to be communicated shortly. The shareholders will be asked to approve the bonus issue and the final dividend, which reflects the company's desire to maintain transparency and shareholder engagement in key decisions.

Looking Ahead

Shilchar Technologies is focused on driving sustainable growth and achieving its long-term strategic goals. The Board’s approval of the dividend and bonus share issuance is expected to bolster investor confidence and reinforce the company’s reputation for sound governance and financial prudence.

The company’s key management, including Chairman Mr. Vishnupriya Civichan, along with the financial and operational leadership, continue to ensure Shilchar Technologies is poised for further expansion and success.

This outcome of the Board meeting highlights Shilchar's commitment to providing value to its shareholders, with clear plans for both immediate and long-term growth. Stakeholders can expect a well-structured transition into the next phase of the company's evolution, supported by strong financial outcomes and strategic initiatives.

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