Utssav CZ Gold Jewels Announces 1:1 Bonus Share Issue
Utssav CZ Gold Jewels has received board approval for a 1:1 bonus share issue that will double the number of outstanding equity shares from 2.5 crore to 5 crore. The company will allocate 2.5 crore new shares at a face value of ₹10 each, raising its paid-up equity share capital from ₹24.998 crore to ₹49.996 crore by capitalising securities premium, free reserves and retained earnings as of 31 March 2026.
The bonus issue is subject to shareholder approval and regulatory clearances, and the record date for eligibility has not yet been announced. Shares are expected to be credited to eligible investors within 60 days of board approval, provided all approvals are obtained. In parallel, the board has proposed increasing the authorised share capital to ₹60 crore, split into 6 crore shares of ₹10 each, to provide headroom for future capital expansion.
Utssav CZ Gold Jewels, a manufacturer and exporter of lightweight jewellery using cubic zirconia and gold casting, saw its stock close at ₹930 on 30 October, down 2.21 % on the NSE. Despite recent weakness, the stock has delivered strong returns, rising 268.68 % over the past year, 317.23 % year-to-date, and 23.97 % over the past month, though it fell 8.31 % in the last week.
Technical analyst Rajesh Bhosale of My Advisor Alpha notes that the stock remains in a strong uptrend but has entered overbought territory, suggesting a possible continued pullback. He identifies an immediate support zone of ₹870–₹880 and a potential bullish signal if the price sustains above ₹980.
Investors should monitor the forthcoming record date and shareholder vote, as the bonus issue will double share holdings without additional cash outlay, while the share price is expected to adjust proportionally. The proposed increase in authorised capital may signal plans for further expansion or future financing activities.
Why it matters
The bonus issue could double investors' share counts and affect stock pricing, making it a key event for current and prospective shareholders.
FAQ
What is the ratio of the proposed bonus share issue?
The company proposes a 1:1 bonus share issue, giving one additional share for each share held.
How many new shares will be issued and what will be the total after the bonus?
2.5 crore new shares will be allotted, increasing total outstanding equity shares to 5 crore.
When will the bonus shares be credited to shareholders?
Shares are expected to be credited within 60 days of board approval, subject to shareholder and regulatory approvals.
What technical support level does the analyst cite for the stock?
Rajesh Bhosale identifies ₹870–₹880 as the immediate support zone.
Source: Mint Markets. See the original source for full details.
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