Utssav CZ Gold Jewels board approved a 1:1 bonus share issue on October 23. The company plans to issue 2.5 crore shares, doubling its equity. While shareholders get one extra share for every share held, the record date is not yet set. The firm also increased its authorised share capital.

Utssav CZ Gold Jewels' board approved a 1:1 bonus share issue, subject to shareholder and regulatory approvals. The company plans to issue 2.5 crore shares, doubling its outstanding equity, and increase authorised share capital to ₹60 crore. The record date is yet to be announced.

Utssav CZ Gold Jewels has approved a 1:1 bonus share issue, under which eligible shareholders will receive one fully paid-up equity share for every share held. The proposal, approved by the company's board on 23, October, is subject to shareholders' approval and other regulatory clearances.

The proposed bonus issue will involve the allotment of 2.5 crore shares of ₹10 each, taking the company's total outstanding equity shares to 5 crore from 2.5 crore. Consequently, its paid-up equity share capital will double to ₹49.996 crore from ₹24.998 crore.

Bonus shares to be issued from reserves

The company said the bonus shares will be issued by capitalising its securities premium, free reserves and retained earnings available as of 31 March 2026.

The shares are expected to be credited to eligible shareholders within 60 days of the board's approval, subject to the necessary shareholder and regulatory approvals. However, the company has not yet announced the record date, which will determine the shareholders eligible for the bonus issue.

Company plans to raise authorised share capital

The board has also approved a proposal to increase the company's authorised share capital to ₹60 crore from ₹24.998 crore. The revised capital will be divided into 6 crore equity shares of ₹10 each.

The proposed increase, which requires shareholder approval, is intended to provide additional headroom for the expansion of the company's paid-up share capital following the bonus issue.

What does a 1:1 bonus issue mean for shareholders?

Under a 1:1 bonus issue, an investor receives one additional share for every share held on the record date. This means the number of shares in an eligible investor's portfolio will double, without any additional payment.

However, the bonus issue does not, by itself, increase the value of an investor's overall holding or change their proportional ownership in the company, assuming all other factors remain unchanged. The share price typically adjusts to reflect the increased number of shares.

Utssav CZ Gold Jewels manufactures, wholesales and exports lightweight jewellery made using cubic zirconia and gold casting.

Utssav CZ Gold Jewels shares have delivered strong returns over the longer term, rising 268.68% over the past year and 317.23% year to date. The stock has gained 23.97% over the past month, though it has seen near-term weakness, declining 8.31% over the past week.

Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said the stock remains in a strong uptrend and has outperformed the broader market. However, it has witnessed a correction over the past few weeks after technical indicators entered deeply overbought territory, and the pullback could continue. He identified ₹870-880 as the immediate support zone, while a sustained move above ₹980 could signal a resumption of the primary uptrend.