Shareholders of GRM Overseas Ltd are in for a reward as the company's stock is set to trade ex-bonus for a significant bonus share issue. The record date for eligibility has been fixed for Wednesday, December 24, 2025. This corporate action will see investors receiving two additional shares for every single share they currently hold.
Understanding the GRM Overseas Bonus Issue Details
Under the approved 2:1 bonus share issue, an investor owning 100 shares of GRM Overseas will see their holding increase to 300 shares after the process is complete. The newly issued shares will carry equal rights (pari passu) with the existing equity shares. To facilitate this, the company's board has recommended increasing the authorised share capital from ₹20 crore to ₹45 crore.
The capital increase will involve expanding the number of equity shares from 10 crore (face value ₹2 each) to 22.5 crore shares. In accordance with SEBI guidelines, Friday, December 26, 2025, will be treated as the deemed date of allotment. The bonus shares are expected to be credited to the demat accounts of eligible shareholders from this date onwards, following standard processing procedures.
Market Reaction and Share Price Adjustment
On the morning of the record date, the GRM Overseas share price opened at ₹178.80. As expected on the ex-bonus date, the stock price underwent an automatic adjustment to reflect the increased number of shares in circulation. It was later trading 1.36% lower at ₹166.20 per share.
Investors should note that a sharp drop visible on trading charts around this time is a standard technical adjustment and not a real loss in investment value. The reduction in the stock's price per share is offset proportionally by the increase in the number of shares each investor holds. Consequently, the total market value of an investor's stake in the company remains unchanged immediately after the bonus issue.
Strong Financial Performance Backs the Corporate Action
The decision to issue bonus shares often follows robust financial performance, and GRM Overseas is no exception. The company recently reported impressive results for the second quarter of the fiscal year 2025-26 (Q2 FY26).
The small-cap firm achieved a 16.2% year-on-year growth in total revenue, which stood at ₹372.1 crore compared to ₹320.2 crore in the same quarter last year. A standout contributor was the export segment, which surged by a remarkable 72%. More significantly, the company's bottom line showed even stronger growth. Profit After Tax (PAT) jumped sharply by 60.5% to ₹14.8 crore, up from ₹9.2 crore in Q2 of the previous fiscal year.
Bonus shares are typically issued by companies wishing to capitalize their reserves and reward shareholders without a cash outflow. Instead of paying dividends, the company reinvests profits and issues additional shares, enhancing liquidity and making the stock more accessible to a broader investor base.
Disclaimer: This article is for informational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
