Silver Touch Technologies Limited has announced a comprehensive postal ballot seeking shareholder approval for significant corporate restructuring measures. The IT software company, listed on both BSE and NSE main boards since 2022, is proposing multiple resolutions to enhance share liquidity and encourage broader retail investor participation.

Stock Split and Capital Restructuring

The company's board, meeting on January 16, 2026, approved proposals for a 1:5 stock split that would subdivide each existing equity share from ₹10.00 face value into five shares of ₹2.00 each. This restructuring aims to improve market accessibility for retail investors while maintaining the company's total capital value.

Authorized Capital Enhancement

Following the stock split, Silver Touch Technologies plans to increase its authorized share capital from ₹16.00 crores to ₹30.00 crores. This expansion will create 15,00,00,000 equity shares of ₹2.00 face value each, facilitating the proposed bonus share issuance and future growth initiatives.

Bonus Share Proposal

The company has proposed a 1:1 bonus issue, offering one new fully paid-up equity share for every existing share held by eligible members. The bonus shares will be issued by capitalizing up to ₹12,68,10,000 from the company's securities premium, general reserves, or retained earnings.

Voting Timeline and Process

Shareholders can participate in the remote e-voting process through CDSL's platform from January 20, 2026, at 9:00 AM IST until February 18, 2026, at 5:00 PM IST. The cut-off date for voting eligibility is January 16, 2026, with M/s. Sandip Sheth and Associates appointed as scrutinizer for the postal ballot process.

Corporate Rationale

The company's management emphasized that these measures reflect Silver Touch Technologies' strong financial position and positive growth outlook. With public shareholders comprising 99.68% of total shareholders holding 25.39% of paid-up capital as of December 31, 2025, the restructuring aims to enhance share liquidity and broaden the investor base.

Implementation Framework

All proposed resolutions require specific shareholder approvals - ordinary resolutions for the stock split, capital increase, and bonus issue, plus a special resolution for memorandum amendments. The company must complete implementation within two months of the board's January 16 decision, subject to regulatory approvals and shareholder consent. Results will be announced within two working days of the voting period's conclusion and communicated to stock exchanges and regulatory authorities.

Silver Touch Technologies Limited's board of directors approved a comprehensive capital restructuring plan during their meeting held on January 16, 2026. The technology company announced multiple corporate actions aimed at enhancing share liquidity and enabling higher participation from public shareholders. The announcement comes as the small-cap stock has delivered exceptional returns, gaining 135.10% over the past year.

Stock Split and Share Capital Restructuring

The board approved a 1:5 stock split whereby each existing equity share with face value of ₹10.00 will be subdivided into 5 equity shares with face value of ₹2.00 each. This subdivision will transform the current share structure significantly and marks the company's first such corporate action since 2000.

Authorized Capital Increase

Following the stock split, the company plans to increase its authorized share capital in stages. The initial authorized capital of ₹16.00 crores (comprising 8,00,00,000 shares at ₹2.00 each) will be increased by an additional ₹30.00 crores, creating 15,00,00,000 new equity shares of ₹2.00 each. This will bring the total authorized share capital to ₹46.00 crores.

Bonus Issue Details

The board approved a 1:1 bonus issue, meaning shareholders will receive one bonus equity share of ₹2.00 face value for every existing share held. The bonus shares will be issued from the company's free reserves available as of March 31, 2025. This represents the company's first bonus issue in over two decades.

The company requires ₹12.68 crores from its free reserves to implement the bonus issue. As of March 31, 2025, the company had ₹118.12 crores in free reserves available for capitalization, providing adequate coverage for the proposed bonus issue.

Strong Stock Performance

The corporate actions announcement comes amid exceptional stock performance. Silver Touch Technologies has demonstrated remarkable growth across multiple timeframes, establishing itself as a multibagger small-cap stock.

Following the announcement, shares of Silver Touch Technologies were trading nearly 5% higher at ₹1,598.00 on the BSE, reflecting positive investor sentiment towards the corporate restructuring plan.

Approval Process and Timeline

All proposed corporate actions require shareholder approval through postal ballot. The board approved the postal ballot notice and appointed M/s. Sandip Sheth & Associates, Practicing Company Secretaries, as scrutinizer for conducting the postal ballot and e-voting process. The company expects to complete all corporate actions by March 15, 2026, subject to receiving necessary approvals from shareholders and statutory authorities. The record date for both the stock split and bonus issue will be determined later.