LKP Finance has maintained a relatively modest corporate action history when it comes to bonus issues. Over more than three decades, the company has announced only one bonus issue in the past, followed by a significant new proposal in early 2026. This limited but notable history makes the recent announcement particularly important for shareholders and market observers.
Bonus issues are a way for companies to reward shareholders by converting reserves into equity shares. While many listed companies use this route frequently, LKP Finance has followed a conservative approach. Available records indicate just one bonus issue between 1994 and 2025, highlighting how rare such actions have been for the company.
LKP Finance announced its first and only historical bonus issue on December 20, 1994. The bonus was issued in the ratio of 3:4, meaning shareholders received three bonus shares for every four shares they held. The ex-bonus date for this issue was January 3, 1994.
Following this issuance, there were no further bonus announcements for more than three decades. From 1994 until 2025, company records do not show any additional bonus issues, making this a long gap in capital restructuring activity.
On January 19, 2026, the board of LKP Finance approved a major bonus issue in the ratio of 4:1. Under this proposal, shareholders will receive four new fully paid-up equity shares of ₹10 face value for every one existing share held on the record date.
This bonus issue will lead to a sharp rise in the company’s paid-up equity capital, increasing it from ₹15.36 crore to ₹76.80 crore. The issue will be funded by capitalising ₹61.44 crore from the securities premium account, without requiring any cash outflow.
The bonus shares are expected to be credited by March 19, 2026, subject to shareholder approval. The company has stated that the record date for determining eligible shareholders will be announced separately.
While a bonus issue does not change the overall value of a shareholder’s investment immediately, it increases the number of shares held. This can improve liquidity and may make the stock more accessible to a wider investor base over time.
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LKP Finance’s bonus issue history is marked by long gaps and infrequent announcements. After only one bonus issue in 1994, the 4:1 bonus approved in 2026 stands out as a major corporate development. Once implemented, it will significantly reshape the company’s equity structure and mark an important milestone in its capital history.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Jan 23, 2026, 2:11 PM IST
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