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.

Silver Touch Technologies Limited's board of directors has approved a comprehensive capital restructuring plan during their meeting held on January 16, 2026. The technology company has announced significant changes to its share structure that will enhance liquidity and enable higher participation from public shareholders.

Stock Split Details

The board has approved subdividing existing equity shares from a face value of ₹10.00 each to ₹2.00 each. Under this arrangement, each current share will be split into 5 new shares, maintaining the same proportional ownership for all shareholders.

Authorized Capital Enhancement

The company has approved a two-stage increase in authorized share capital. Initially, following the stock split, 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 to ₹46.00 crores by creating an additional ₹30.00 crores worth of equity shares, comprising 15,00,00,000 shares of ₹2.00 each.

Bonus Issue Announcement

The board has approved issuing bonus shares in a 1:1 ratio, meaning shareholders will receive one additional share for every share held. This bonus issue will be funded from the company's free reserves available as of March 31, 2025.

The bonus issue will require ₹12.68 crores from free reserves, while the company has ₹118.12 crores available for capitalization as of March 31, 2025, providing adequate coverage for the proposed bonus distribution.

Implementation Timeline and Approvals

All proposed changes require shareholder approval through postal ballot. The company has appointed M/s. Sandip Sheth & Associates, Practicing Company Secretaries, as scrutinizer for conducting the postal ballot and e-voting process. The board meeting, conducted via video conferencing, commenced at 1:00 PM IST and concluded at 2:15 PM IST on January 16, 2026.

The company expects to complete all corporate actions by March 15, 2026, subject to receiving necessary approvals from shareholders and applicable statutory authorities. The record date for determining eligible shareholders will be announced later following the completion of the postal ballot process.