Orient Technologies Announced 1:10 Bonus Issue: Shares Zoomed 15% on Tuesday

Orient Technologies Limited, a company known for its expertise in data center solutions, virtual storage, and enterprise servers across multiple sectors, surged up to 15% on Tuesday, December 30, following shareholder approval for a bonus share issue.

Orient Technologies’ shares jumped ~15% and touched the day high of ₹380 at 11:25 AM. The stock has risen 77% since its IPO price of ₹206, though it is still down 26% year-to-date.

Orient Technologies Bonus Issue Details

In an official exchange filing, the company stated that its shareholders approved a bonus issue in the ratio of 1:10, marking its first free share allocation since its listing in August of last year. Under this plan, eligible shareholders will receive one bonus share for every 10 shares they hold as on the record date, which will be announced later.

The board of Orient Technologies had approved the bonus issue back in November, alongside the company’s September quarter results. The bonus shares will be issued through the capitalization of ₹4.16 crore from the company’s Securities Premium Account. The company has also obtained the necessary approvals from stock exchanges to proceed with the issue.

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Orient Technologies Shareholding Pattern

At the end of the September quarter, the company’s promoters held a 73.24% stake, while around 82,000 retail shareholders, each holding up to ₹2 lakh in authorized share capital, collectively held 22.1% of the company, forming the majority of the public investor base. Notably, mutual funds do not currently hold any stake in the stock.

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