Organic Recycling Systems has approved the allotment of 51,99,630 fully paid-up bonus equity shares in a ratio of 1:2. The Board’s Bonus Allotment Committee finalized the decision on August 21, 2026, with a record date of August 20, 2026.

The company issued this intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The allotment applies to shareholders registered in the Register of Members or Register of Beneficial Owners as on the record date.

Capital Structure Impact

Consequent to the bonus issue, the paid-up equity share capital increases from ₹10,39,92,750 to ₹15,59,89,050. The total number of equity shares rises from 1,03,99,275 to 1,55,98,905, with each share carrying a face value of ₹10.

Allotment Mechanics

Fractional shares arising from the calculation have been ignored, and no allotment has been made for such portions. The new bonus shares rank pari-passu in all respects with existing equity shares, carrying identical rights.

For members holding physical shares, the bonus equity shares will be transferred to a Suspense Escrow Demat Account within statutory time limits. No letter of allotment will be issued to these allottees, and voting rights for shares held in the Suspense Escrow Demat Account remain frozen until dematerialization.

Organic Recycling Systems has fixed August 20, 2026, as the record date for its long-awaited bonus share issue, finalizing the mechanics of the capitalisation of reserves approved by shareholders earlier this month. The company will allot up to 51,99,637 fully paid-up bonus equity shares of ₹10 each in a 1:2 ratio, meaning one new share for every two existing shares held. This development concludes the procedural phase following the unanimous approval at the Extra-ordinary General Meeting (EGM) on August 3, 2026, and sets clear timelines for shareholder entitlements and market listing.

The Bonus Allotment Committee determined the schedule in compliance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shareholders holding equity shares as of the close of business on August 20, 2026, will be eligible to receive the bonus shares. The deemed date of allotment is set for Friday, August 21, 2026 (T+1 Day). Organic Recycling Systems undertakes to submit requisite documents to the depositories by 12:00 p.m. on that day. Consequently, the newly allotted shares will be available for trading on Monday, August 24, 2026 (T+2 Day), adhering to SEBI Circular No. SEBI CIR/CFD/PoD/2024/122 dated September 16, 2024.

Allotment Details and Timeline

The bonus issue represents a significant capitalization event, increasing the company’s share capital without requiring additional cash outlay from investors. The move enhances the liquidity and marketability of the stock while reflecting the strength of the company’s retained earnings. Sarang Bhand, Managing Director, confirmed the timeline via intimation to BSE Limited on August 5, 2026, following the receipt of in-principle approval under Regulation 28(1) of SEBI LODR Regulations from the exchange on August 4, 2026.

Background: Unanimous Shareholder Support

The path to this announcement was cleared during the EGM held on August 3, 2026, where the resolution passed with 100% support from polled votes. The meeting was conducted via Video Conferencing/OAVM in compliance with the Companies Act, 2013, and MCA circulars. Sarang Bhand presided over the meeting in Mumbai, as Chairman Rakesh Mehra was absent. A quorum of 21 members was present, with voting facilitated through remote e-voting and an ‘Insta-Poll’ facility. The promoter group, holding 1,567,006 shares, voted entirely in favour, alongside public non-institutional investors.

What This Means for Investors

Investors must ensure their holdings are registered in their demat accounts by the close of business on August 20, 2026, to qualify for the bonus shares. No action is required from shareholders other than maintaining their existing positions. The increase in share count will proportionally dilute the face value per share but maintain the total market value of individual holdings, assuming no change in market price. The seamless transition to trading on August 24 underscores the company’s adherence to regulatory timelines and operational efficiency.