Bonus issue alert! This smallcap infra stock that jumped 50% in a month has declared 1:1 bonus issue

Ahmedabad-based infrastructure and construction company Chavda Infra has announced a bonus issue in the ratio of 1:1 for its shareholders, rewarding them after the smallcap stock jumped over 50% in a month and 70% in just over four months.

Chavda Infra announced that its board of directors, during its meeting held on Thursday, considered and recommended the bonus issue, whereby the company will issue one new bonus share with a face value of Rs 10 each for every existing share held in the company as on the record date.

A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.


Accordingly, Chavda Infra's board approved the plan to increase the company’s authorised capital from the existing Rs 35 crore divided into 3.5 crore shares to Rs 70 crore divided into 7 crore shares with a face value of Rs 10 each. The bonus shares will be issued by utilising nearly Rs 32.66 crore from the company’s free reserves and share premium, the company said, while noting that its balance of premium reserve, free reserves and retained earnings stood at around Rs 188 crore as on March 31, 2026.

The record date to determine the eligibility of shareholders set to receive the bonus shares will be announced later. Only those shareholders who own shares of the company as of the record date will be eligible to receive the bonus shares, which are expected to be credited within 60 days from the date of the board’s approval.

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Chavda Infra share price

Chavda Infra shares have rallied more than 53% in a month and 7% in a week to trade at around Rs 134.50 apiece on NSE on Friday. After hitting a 52-week low of Rs 80.60 apiece at the end of March this year, the stock rallied 71% to hit a 52-week high of Rs 138 apiece earlier this week.

The smallcap stock has overall gained more than 9% in 2026 so far, and 24% in a year. The company currently has a market capitalisation of more than Rs 439 crore.

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