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 including stock split, bonus issue, and authorized capital increase, all subject to shareholder approval through postal ballot.

Stock Split and Share Sub-division

The board approved sub-division of equity shares from face value of ₹10.00 each to ₹2.00 each in a 1:5 ratio. This means each existing equity share of ₹10.00 face value will be split into 5 equity shares of ₹2.00 face value each. The rationale behind this split is to enhance liquidity of the company's equity shares and enable higher participation from public shareholders.

Authorized Capital Enhancement

Following the stock split, the company plans to increase its authorized share capital in two stages. Initially, the authorized capital will be reclassified to ₹16.00 crores divided into 8,00,00,000 equity shares of ₹2.00 each. Subsequently, the authorized capital will be increased by creating additional 15,00,00,000 equity shares of ₹2.00 each, taking the total authorized capital to ₹46.00 crores.

Bonus Issue Details

The board approved issuing bonus equity shares in the ratio of 1:1, meaning shareholders will receive one bonus share of ₹2.00 face value for every existing share held. The bonus issue will utilize free reserves available as of March 31, 2025, requiring ₹12.68 crores for implementation. The company has adequate free reserves of ₹118.12 crores as of March 31, 2025, to support this bonus issue.

Implementation Timeline and Process

The company expects to complete all corporate actions by March 15, 2026, subject to receiving necessary approvals from shareholders and statutory authorities. The board approved the postal ballot notice for seeking shareholder approval and appointed M/s. Sandip Sheth & Associates, Practicing Company Secretaries, as scrutinizer for conducting the postal ballot and e-voting process.

The board meeting commenced at 1:00 PM IST and concluded at 2:15 PM IST on January 16, 2026, conducted through video conferencing. All decisions were made in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and related circulars. The outcome has been made available on the company's website at www.silvertouch.com .

Silver Touch Technologies shares gained as much as 4.1% on Friday following the company's announcement of significant corporate actions. The stock has delivered remarkable returns, rising 80% in the last 14 trading sessions and 140% over the past 12 months, with shares trading at ₹1,591.

Stock Performance and Market Capitalization

The company's market capitalization has crossed ₹2,000 crores during this impressive rally. Silver Touch Technologies also secured a mandate from the Indian armed forces during this period, contributing to investor confidence.

Share Subdivision Details

The board approved a 1:5 share subdivision on January 16, transforming each existing equity share with a face value of ₹10.00 into five equity shares with a face value of ₹2.00 each. This subdivision aims to enhance liquidity and enable higher participation from public shareholders.

Bonus Issue Implementation

The board approved a 1:1 bonus issue, meaning shareholders will receive one additional equity share of ₹2.00 face value for every existing share held. This marks the first instance of the company announcing both a bonus issue and stock split for its shareholders.

Capital Structure Enhancement

Following the share subdivision, the company plans to increase its authorized share capital from ₹16.00 crores to ₹46.00 crores through the creation of additional 15,00,00,000 equity shares of ₹2.00 each.

Implementation Timeline

The company expects to complete these corporate actions by March 15, subject to receiving necessary approvals from shareholders and statutory authorities. The record date for both the bonus issue and stock split will be disclosed later. The board has appointed M/s. Sandip Sheth & Associates as scrutinizer for conducting the postal ballot and e-voting process.