GTV Engineering’s share price rallied to a new 52-week high of approximately ₹1,205 on July 17, 2025, reflecting a 3.2% single-day gain amid positive corporate developments. Over the past five years, the small-cap stock has stunned investors by delivering an extraordinary 4,500% return, establishing itself as a standout multibagger in India’s engineering and capital goods sector.
Backed by strong fundamentals, robust order flows, and strategic expansion, the surge also follows announcements of a stock split, bonus issue, and capital restructuring, creating renewed investor interest.
GTV Engineering Share: Split, Bonus & Capital Boost
GTV Engineering officially notified the BSE regarding a series of shareholder-friendly corporate actions:
- Stock Split (Sub-Division): The company will split one ₹10 face-value share into 5 shares of ₹2 each. This move, passed via postal ballot, is aimed at improving liquidity and making the stock more accessible to retail investors.
- Bonus Issue: Post-split, every shareholder will receive 2 bonus shares for every 1 share held, resulting in a 2:1 bonus ratio. This effectively multiplies a shareholder’s stake by 3x after the split.
- Authorized Capital Increase: To support the expanded equity base, GTV has proposed an increase in authorized capital from ₹4 crore to ₹12 crore, pending shareholder approval.
This trio of corporate actions aims to reward existing shareholders, enhance market liquidity, and pave the way for future capital growth.
What It Means for Shareholders
Here’s a simple example to understand the combined impact of the split and bonus:
- Pre-Split Holding: 1 share of ₹10 face value
- Post-Split: 5 shares of ₹2 each
- Post-Bonus: 2 bonus shares for each of the 5 = 10 additional shares
- Final Holding: 15 shares of ₹2 each
Thus, for every original share, investors will eventually hold 15 shares, reflecting a 15x increase in the number of units held—though the overall investment value will remain initially unchanged.
Key Dates, Pending Approvals & Market Implications
- Board Approval: June 7, 2025
- Record Date: Set around July 28, 2025
- Postal Ballot: Currently underway
- Ex-Split/Bonus Dates: To be announced post-approval
The timeline indicates near-term volatility around the record and ex-dates as investors adjust to the revised structure. Typically, prices adjust downward to reflect the increased number of shares, but overall value remains constant.
Why This Matters
- Liquidity Enhancement: Lower face value per share makes it more affordable, increasing daily trading volumes.
- Shareholder Rewards: Bonus shares act as a non-cash reward and signify strong internal confidence.
- Strategic Signal: The move indicates that management expects future growth and wants to align capital structure with long-term goals.
This bold combination of actions not only boosts investor sentiment but also positions GTV Engineering as a serious growth contender among small-cap stocks.
GTV Engineering Bonus and Split details
| Action | Details |
|---|---|
| Stock Split | ₹10 ➝ 5 × ₹2 shares |
| Bonus Issue | 2 bonus shares for each share held |
| Total Holding | 15 shares (₹2 each) per original |
| Record Date | ~July 28, 2025 |
| Authorized Capital | Raised from ₹4 crore to ₹12 crore |
Future Outlook
In the short term, share price may fluctuate due to valuation adjustments and speculative interest. However, with a proven growth track record and strategic capital actions, GTV Engineering remains a stock to watch for long-term investors.
The actual success of this strategy will depend on execution of the split and bonus, continued business momentum, and how the stock performs post-adjustment. A higher number of shares in circulation could attract increased retail participation, potentially driving long-term value if backed by sustained earnings performance.
F.A.Q.
– What is the record date for GTV Engineering’s stock split and bonus issue?
The record date is set around July 28, 2025, as per the company’s announcement. Shareholders holding the stock on or before this date will be eligible for the stock split and bonus shares.
– How will the stock split and bonus issue affect my existing shares?
If you own 1 share of ₹10 face value, it will be split into 5 shares of ₹2 each. Then, for every 1 of those 5 shares, you’ll receive 2 bonus shares, totaling 15 shares of ₹2 each after the process is complete.
– Will the value of my investment change after the stock split and bonus issue?
No, the total value of your investment remains the same initially. The number of shares increases, but the share price typically adjusts accordingly to maintain your original investment value.
– When will the new (split and bonus-adjusted) shares be credited to my demat account?
The credit of new shares usually occurs within 1–2 weeks after the ex-date and record date, depending on the completion of postal ballot approval and regulatory clearances.
– Why is GTV Engineering doing a stock split and bonus issue together?
The stock split increases liquidity by lowering the per-share price, making it more affordable for retail investors. The bonus issue rewards shareholders, boosts confidence, and reflects the management’s positive outlook on future performance.
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