Orient Technologies Ltd. marks the final trading session for investors to purchase shares and qualify for its bonus issue ahead of the record date on Monday, January 6. The IT company's bonus announcement presents the last opportunity for new investors to participate in the share distribution.

Bonus Issue Details

The company has structured its bonus offering with specific parameters for eligible shareholders:

Only investors who hold Orient Technologies shares in their demat account as of the record date will be eligible for the bonus allotment. The bonus shares will rank pari passu with existing fully paid-up equity shares and will be credited in dematerialized form to eligible shareholders.

Settlement Cycle Requirements

Under India's T+1 settlement cycle, investors must purchase shares at least one trading day before the record date to qualify for the bonus issue. This timing requirement means that purchases made on the record date itself will not reflect in the demat account in time for eligibility.

The settlement cycle creates a critical deadline for investors seeking to participate in the bonus distribution, making the current trading session the final opportunity to acquire qualifying shares.

Strategic Objectives

The company has outlined specific goals for implementing this bonus issue. Orient Technologies stated that the bonus issue is intended to increase equity liquidity and broaden shareholder participation in the company's ownership structure.

A bonus issue represents the distribution of free shares to eligible shareholders, with the share price adjusting in the ratio of the bonus allotment at the ex-date. However, this adjustment does not affect the overall value of existing holdings, as the total market capitalization remains unchanged while the number of shares increases proportionally.

Orient Technologies has announced January 7, 2025, as the record date for its approved 1:10 bonus share issue. The IT infrastructure service provider's shares had earlier surged 14% to ₹376.55 following shareholder approval of the bonus proposal through postal ballot process.

Record Date and Eligibility Details

The company has formally communicated the record date to stock exchanges under Regulation 42 of SEBI Listing Regulations. Shareholders holding shares as on January 7, 2025, will be eligible to receive bonus shares in the approved 1:10 ratio.

Under the structure, eligible shareholders will receive one bonus share for every 10 shares held. The bonus shares will rank pari passu with existing fully paid-up equity shares and will be credited in dematerialised form to eligible shareholders.

Market Performance and Previous Rally

The stock had demonstrated exceptional market response to the initial bonus approval, with shares advancing significantly in trading sessions. The company's focus on increasing equity liquidity and broadening shareholder participation resonated well with investors.

The surge built upon previous gains, with the stock having gained 10% in earlier sessions following the initial bonus announcement. Long-term investors continue to benefit significantly from their investment since the IPO.

Shareholder Impact and Strategic Benefits

The bonus issue will particularly benefit Orient Technologies' substantial retail investor base, which represents a significant portion of the company's public shareholding. The company maintains strong retail participation with over 82,000 individual investors.

The bonus issue is intended to increase equity liquidity and broaden shareholder participation, potentially attracting more institutional interest. The company's appeal remains primarily among individual investors, with the bonus structure designed to reward long-term shareholders.

Company Operations and Business Focus

Orient Technologies specializes in IT infrastructure services, data center solutions, virtual storage, and enterprise servers. The company serves clients across multiple industry verticals, positioning itself within the growing digital transformation sector that caters to businesses requiring robust data management and storage capabilities.