LKP Finance Announces Major Bonus Share Issue and Capital Expansion
Investors will closely watch LKP Finance Ltd. shares on Tuesday, January 20, 2026. The company's board approved a significant bonus issue of shares and an increase in authorized share capital. This news comes directly from an exchange filing made public on Monday.
Details of the Bonus Share Issue
The board of LKP Finance disclosed a bonus issue ratio of 4:1. This means shareholders will receive four additional shares for every single share they currently hold. The eligibility depends on the record date, which the company has not yet announced.
These bonus shares will be fully paid-up equity shares with a face value of ₹10 each. The company plans to issue them using funds from its securities premium account. Shareholders can expect the bonus shares to be credited within two months from the board meeting date, by March 19, 2026, at the latest.
Authorized Share Capital Increase
During the same board meeting on January 19, 2026, LKP Finance also approved raising its authorized share capital. The limit will increase from ₹30 crore to ₹110 crore. This move requires approval from the company's shareholders at a future meeting.
Management's Perspective on the Decisions
Kapil Garg, Promoter of LKP Finance, commented on these corporate actions. He stated that the decisions reflect the company's strong fundamentals and business momentum. The bonus issue aims to share value creation with loyal shareholders.
Garg explained that the enhanced authorized capital prepares the company for its next growth phase. He emphasized building LKP Finance as a future-ready platform. The goal is to pursue larger opportunities within India's evolving financial and digital economy.
Stock Performance and Market Reaction
LKP Finance, a Mumbai-based financial services firm, has been a standout performer. Its stock has delivered multibagger returns to investors. Data from the Bombay Stock Exchange shows impressive gains.
Over the past year, the stock has surged more than 400%. In the last six months alone, it has gained approximately 116%. The share price ended Monday's trading session at ₹1,099.95. This represents a gain of ₹33, or 3.11%, from the previous close of ₹1,066.8.
Recent performance shows mixed trends. The stock has advanced nearly 25% over the past month. However, it has declined about 5% during the last five trading sessions. Market participants will monitor how the bonus announcement impacts trading activity on Tuesday.
Important Note: This information serves educational purposes only. Investors should consult certified experts before making any investment decisions. Market conditions can change rapidly, and individual circumstances vary widely.
