Mold-Tek Packaging Announces 1:1 Bonus Shares and ₹3 Dividend: Stock Rebounds Over 2% Following Board Approval

Mold-Tek Packaging Limited has delivered a major positive surprise for its shareholders by announcing a lucrative corporate action package. During its board meeting on August 26, 2026, the company approved a 1:1 bonus share issuance alongside a final dividend recommendation, triggering an immediate recovery in its stock price.1:1 Bonus Issue and Financial BreakdownUnder the board-approved proposal, Mold-Tek Packaging will issue one new bonus equity share with a face value of ₹5 for every existing fully paid-up equity share held by investors as of the yet-to-be-announced record date.Total Bonus Shares: The company will issue a total of 3,32,28,914 bonus equity shares amounting to ₹16.61 crore.Funding Source: The bonus shares will be funded directly from the company's robust free reserves, which stood at ₹655.11 crore as of March 31, 2026.Capital Expansion: Following the implementation of the bonus issue—scheduled within two months from the board meeting date—the company's paid-up share capital will double from ₹16.61 crore to ₹33.22 crore, expanding total shares from 3,32,28,914 to 6,64,57,828.Historical Milestone: This marks the company's first-ever bonus share issuance in its corporate history, following past stock splits in 2016 and a rights issue in 2020.Final Dividend of ₹3 Approved for FY25-26In addition to the bonus announcement, the board recommended a final dividend of ₹3 per equity share (60% on a face value of ₹5) for the financial year 2025-26.The dividend payout remains subject to formal approval by shareholders at the upcoming Annual General Meeting, with the specific record date to be notified shortly.Stock Price Rebound and Market ReactionThe double announcement injected fresh momentum into the stock. Recovering swiftly from an intraday low of ₹698.35 in the red, the stock surged over 2% to touch a high of ₹734.40 compared to its previous close of ₹706, reflecting strong investor enthusiasm following the board's growth and reward initiatives.