LKP Finance Share Price in Focus; Announces 4:1 Bonus Issue

LKP Finance Ltd. held a board meeting where significant decisions were made regarding the company's share capital structure. The board approved a bonus issue and an increase in authorised share capital, subject to shareholder approval. 

Details of the Bonus Issue 

LKP Finance has announced a bonus issue of equity shares in a 4:1 ratio. This means that shareholders will receive 4 new fully paid-up equity shares for every 1 existing share they hold. The face value of each share is ₹10.  

This issuance will be executed by capitalising the Securities Premium Account, pending shareholder approval. 

The total number of bonus shares to be issued is 6,14,46,600, amounting to ₹61,44,66,000. The bonus shares will be issued from the Securities Premium Account as of December 31, 2025. 

Increase in Authorised Share Capital 

The board has also approved an increase in the authorised share capital of the company from ₹30,00,00,000 to ₹1,10,00,00,000.  

This increase is also subject to shareholder approval. The move is aimed at accommodating the new bonus shares and providing flexibility for future capital requirements. 

Pre and Post-Issue Share Capital 

Before the bonus issue, the paid-up capital of LKP Finance stood at ₹15,36,16,500, divided into 1,53,61,650 equity shares of ₹10 each.  

Post-issue, the paid-up capital will rise to ₹76,80,82,500, divided into 7,68,08,250 equity shares of ₹10 each. 

Read More: Dividends and Bonus Issues This Week (Jan 19–23, 2026): ICICI Prudential, NLC India and More! 

Implementation and Timeline 

The bonus shares are expected to be credited or dispatched within 2 months from the date of the board meeting, which is on or before March 19, 2026.  

The company has appointed M/s. Abhay K & Associates as the scrutiniser for the postal ballot process required for shareholder approval. 

LKP Finance Share Price Performance 

As of January 20, 2026, at 9:23 AM, LKP Finance share price on BSE was trading at ₹1,149.00 up by 4.80% from the previous closing price. 

Conclusion 

LKP Finance's decision to issue bonus shares and increase its authorised share capital marks a significant development in its capital structure. These actions, pending shareholder approval, are set to enhance the company's equity base and provide additional value to its shareholders. 

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