Summary: If you own shares of Ram Ratna Wires Ltd (NSE: RAMRAT / BSE: 522281), here’s a positive catalyst you need to know about – the company has approved a 1 : 1 bonus share issue, meaning one free share for every share currently held.
What exactly is happening with Ram Ratna Wires?
- The Board of Directors of Ram Ratna Wires approved issuing bonus equity shares in the ratio of 1 : 1 (one bonus share for each shareholder’s existing share) of face value ₹5 each.
- The company will issue about 4,66,26,536 bonus shares using reserves and retained earnings. This will raise the paid-up share capital from approx ₹23.31 crore (4,66,26,536 shares) to approx ₹46.63 crore (9,32,53,072 shares).
Ram Ratna Wires Stock Chart
Key dates to remember
- Record Date: 26 December 2025. If you are listed as a shareholder on this date, you’ll be eligible for bonus shares.
- Credit / Allotment Estimate: The bonus shares are expected to be credited or dispatched on or before 10 January 2026.
- Ex-Bonus Date: The day shares begin trading without the bonus entitlement will be just prior to the record date — investors buying after the ex-bonus date will not be eligible. (Exact ex-date to be notified separately.)
Why this is significant
- Issuing bonus shares is a way for the company to reward loyal shareholders without paying cash.
- It also enhances liquidity — the total number of shares increases, potentially broadening trading participation.
- The ratio 1:1 is quite generous for a small-cap company, signalling confidence from the management in the growth prospects of Ram Ratna Wires.
- Also worth noting: the company’s Q2 FY26 results showed ~24% growth in revenues and ~30% growth in PAT, implying the bonus comes on the back of improving business momentum.
What it means for you as a shareholder
- If you held, say, 100 shares as of the record date, you’ll receive an additional 100 shares. Total then = 200 shares.
- Your % ownership in the company remains the same (your stake isn’t diluted since all shareholders get the bonus proportionally).
- However your per-share value will adjust because the number of shares doubles — important for tracking cost basis and future capital gains.
- After allotment, you could exercise your own decision: hold for growth, sell part/all for liquidity, etc. But factor in tax implication and your long-term view.
Things to check / action items
- Confirm your shares are in demat form, and your details are updated (e.g., bank mandate, address) so you receive bonus credits smoothly.
- If you buy shares, ensure the trade is settled before the ex-bonus date to qualify.
- Monitor communication from the company/your broker for exact ex-date and how bonus shares will be credited (auto in demat typically).
- Review your portfolio: doubling of number of shares means you may want to rebalance exposure.
- Though bonus shares are a plus, it’s not a substitute for due diligence on fundamentals. Continue to evaluate Ram Ratna Wires’ operating performance, growth investments, industry trends (winding wires, copper tubes & pipes, etc).
A note of caution
- Bonus shares don’t create value out of thin air — they just redistribute the existing value across more shares. Price may adjust downward accordingly.
- For small-cap stocks, volatility can be higher, so while the bonus is positive, it doesn’t guarantee automatic price movement upward.
- Always consider your investment horizon — if you own many shares, doubling might increase concentration risk.
Samay’s Take
For shareholders of Ram Ratna Wires, the announcement of a 1 : 1 bonus share issue is a concrete reward and a signal of management’s confidence. If you are listed on the books by 26 Dec 2025, you’ll likely see the bonus shares hit your demat account by around 10 Jan 2026. That said, maintain focus on business performance, stay aware of the ex-date and how your holdings evolve, and ensure this corporate action aligns with your broader investment plan.
