Two companies are set to reward shareholders with bonus shares this week, as Orient Technologies and Antariksh Industries prepare to distribute additional equity to their stakeholders. Both companies have announced their first-ever bonus issues in identical 1:10 ratios, marking significant milestones for their respective shareholders.

Investors must pay careful attention to the record dates to ensure eligibility for these bonus allotments. Under India's T+1 settlement cycle, shares must be purchased at least one trading day before the record date, as purchases made on the record date itself will not reflect in demat accounts in time for eligibility.

Orient Technologies Bonus Issue

Orient Technologies Ltd leads the week's bonus activity with its record date scheduled for January 5. The company's board has recommended issuing bonus shares in a 1:10 ratio, subject to shareholder approval.

Shareholders holding shares in their demat accounts as of the record date will receive one new fully paid-up equity share for every 10 existing shares they hold.

Antariksh Industries Bonus Announcement

Antariksh Industries follows closely with its bonus issue record date set for January 9. The company has also recommended a 1:10 bonus share ratio, matching Orient Technologies' offering structure.

This marks Antariksh Industries' inaugural bonus issue, representing a significant corporate action for the company's shareholders. The identical ratio structure provides shareholders with the same proportional benefit as Orient Technologies.

Key Investment Considerations

Both bonus issues represent the companies' first such distributions to shareholders, indicating management confidence in their respective business prospects. The 1:10 ratio means shareholders will see their shareholding increase by 10% through these bonus allotments.

Investors interested in participating must ensure their share purchases settle before the respective record dates. The staggered timing of January 5 and January 9 provides opportunities for strategic positioning across both companies during the week.

ITC shares extended their decline on Friday afternoon, trading at ₹349.95, down 3.82% from the previous close of ₹363.85, as investors continued to digest the impact of an unprecedented government tax hike on cigarettes. The stock touched an intraday low of ₹345.25—marking its 52-week low—after opening at ₹360.00.

Heavy Trading Volumes Reflect Market Distress

Trading activity surged dramatically as investors rushed to reassess positions following the tax bombshell. The stock witnessed exceptional volumes with buyers marginally outnumbering sellers despite the sharp decline.

The stock has now declined 28.44% over the past year, with the recent two-day selloff following Thursday's 10% crash—the worst single-day drop since March 2020.

Unprecedented Tax Structure Creates Cascading Impact

The Finance Ministry's notification has fundamentally altered the cigarette taxation landscape, effective February 1, 2026. The new structure combines a 40% GST rate on MRP (versus 28% on net sales previously) with sharply higher basic excise duties, creating a cascading tax effect that particularly impacts longer cigarette segments.

JM Financial highlighted that the 65mm+ segments, which comprise 70% of ITC's volumes, face the most severe impact from the revised excise duty structure.

Brokerages Slash Targets Amid Margin Concerns

Leading brokerages have moved swiftly to downgrade their outlook as the full impact of the tax changes becomes clear. Motilal Oswal led the downgrades, cutting its rating from 'Buy' to 'Neutral' while slashing the target price to ₹400 from higher levels.

The brokerage noted that ITC will need price hikes of at least 25% across its cigarette portfolio just to maintain current net realizations, raising concerns about consumer acceptance and potential volume declines.

Volume Risks from Illicit Market Shift

Analysts warn that the sharp price increases necessitated by the tax hike could reverse years of progress against illicit cigarette brands. The tax stability of recent years had helped legal cigarette makers gain ground, with ITC delivering 5% volume CAGR over five years as the illicit market's share contracted.

However, the increased price arbitrage between legal and illegal brands poses significant risks. Concerns mount that consumers may downgrade to cheaper alternatives or illicit brands, potentially shifting volumes back to the illegal market and undermining ITC's market position.

The unprecedented nature of this tax increase has created substantial uncertainty about ITC's ability to navigate the challenging period ahead while maintaining its market leadership in the tobacco segment.