Smallcap company to consider first-ever bonus issue on September 14. Check details

Small-cap company SMC Global Securities on Thursday informed the stock exchanges that its Board of Directors will meet on Wednesday, September 24, 2025, to discuss, among other items, its first-ever proposal for issuing bonus equity shares by capitalizing reserves.

“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, 24th September 2025, inter alia, to consider and recommend for approval of the shareholders the proposal for issuance of Bonus Equity Shares by way of capitalization of reserves,” the company said in an exchange filing.

If approved, existing shareholders will receive additional shares for free in proportion to their current holdings — a move that typically improves liquidity and rewards long-term investors.


The company also stated that, as per its insider trading policy, the trading window for designated persons and their relatives will remain closed from September 18, 2025, until September 26, 2025. This is a standard compliance measure taken ahead of key announcements such as a bonus issue.

Trendlyne data suggests that, if approved, this will be the first-ever bonus issue in the history of SMC Global Securities.

Bonus shares are issued when a company converts a part of its free reserves or retained earnings into share capital and distributes additional shares to existing shareholders at no extra cost. Companies usually issue bonus shares to reward shareholders, improve liquidity, and signal confidence in their future performance. By issuing these shares, the company increases its paid-up capital without any cash outflow, strengthening its capital structure and preserving cash for expansion or other business needs.

For investors, bonus shares increase the number of shares they hold, which can enhance overall wealth if the company continues to perform well. Since the share price adjusts proportionately after the bonus issue, the total investment value remains the same initially, but liquidity in the stock improves, making it easier to buy or sell shares.

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