Indus Finance Limited has issued a postal ballot notice seeking member approval for the issuance of bonus equity shares in the ratio of 5:9. The company plans to capitalise up to ₹5.14 crore from its reserves to allot these shares.

The proposal involves issuing five fully paid-up equity shares of ₹10 each for every nine existing equity shares held by shareholders as on the record date. This corporate action aims to enhance wealth creation and increase liquidity for broader retail participation. The Board of Directors recommended this move at its meeting held on October 14, 2026.

Voting Schedule and Eligibility

The voting process will be conducted exclusively through electronic means (e-voting) via the Central Depository Services (India) Limited (CDSL) platform. Physical postal ballot forms are not being dispatched, in compliance with Ministry of Corporate Affairs circulars.

Shareholders whose names appear in the Register of Members or List of Beneficial Owners as on the cut-off date are eligible to vote. Voting rights are proportional to the paid-up equity share capital held on this date. Individual shareholders holding securities in demat mode can vote through their depository accounts, while physical holders and non-individual demat holders must access the CDSL e-voting portal directly.

Financial Implications and Terms

The bonus issue requires the capitalisation of a sum not exceeding ₹5,14,35,000 (Rupees Five Crores Fourteen Lakhs Thirty Five Thousand Only). This amount will be drawn from the company's free reserves, securities premium account, and/or capital redemption reserve. The newly allotted bonus shares will rank pari passu in all respects with the existing fully paid-up equity shares.

M/s KRA & Associates, Practising Company Secretaries based in Chennai, have been appointed as the Scrutinizer to oversee the postal ballot and e-voting process. The resolution is subject to an Ordinary Resolution passing with the requisite majority. If approved, the results will be announced to BSE Limited and displayed on the company’s website and CDSL’s platform.

What the Numbers Show

The proposed ratio of 5 bonus shares for every 9 existing shares implies a significant expansion of the company's outstanding equity base without diluting existing shareholders' proportionate ownership. By capitalising ₹5.14 crore, Indus Finance is converting accumulated reserves into permanent share capital. This action typically signals management confidence in the company's financial health and a strategic intent to improve stock liquidity by lowering the per-share price, potentially attracting greater retail investor interest.

Indus Finance has announced the closure of its trading window for designated persons starting October 1, 2026. This measure precedes the declaration of unaudited financial results for the quarter ending September 30, 2026.

The restriction applies to all designated persons of the company and their immediate relatives. The window will remain closed until the expiry of 48 hours after the official declaration of the results for the second quarter of fiscal year 2027 (Q2FY27).

Regulatory compliance and timeline

This action is taken in accordance with the Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons. The company adheres to these guidelines pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended. The closure ensures that no insider trading occurs during the sensitive period leading up to the release of quarterly performance data.

The Board Meeting scheduled to consider and approve the financial results for the quarter ending September 30, 2026, will be intimated in due course. No specific date for the board meeting was disclosed in the initial notification.

Key details of the announcement

The company confirmed that the notification was issued by K K Dinakar, Company Secretary and Compliance Officer. This standard procedural step prevents any potential misuse of unpublished price-sensitive information during the earnings preparation phase.