Pradhin Limited Announces Generous 10:1 Bonus Issue to Boost Shareholder Value

Pradhin Limited Bonus Issue: In a bold move aimed at rewarding long-term investors and enhancing market liquidity, Pradhin Limited has announced a 10:1 bonus issue of equity shares, in its Board Meeting held on 7th September 2025. This means shareholders will receive 10 bonus shares for every 1 fully paid-up equity share they currently hold—a significant corporate action that has already stirred investor interest across both BSE and NSE.

What Is a Bonus Issue?

Pradhin Limited Bonus Issue: A bonus issue is a method by which companies issue additional shares to existing shareholders without any extra cost, based on the number of shares already owned. It’s often seen as a sign of confidence in the company’s future prospects and a way to make the stock more affordable and liquid.

In Pradhin’s case, the 10:1 ratio is particularly generous. For example, an investor holding 100 shares would receive an additional 1,000 shares, dramatically increasing their stake and potential future returns—all without spending a rupee more.

Why Is Pradhin Doing This?

The bonus issue is part of Pradhin’s broader strategy to:

Enhance shareholder value by increasing the number of shares held by investors.
Improve liquidity in the stock, making it more attractive and easier to trade.
Reward long-term investors who have stayed with the company through its volatile phases.

Pradhin Limited Bonus Issue: The announcement comes at a time when Pradhin’s stock, a penny stock trading under ₹1, has seen a surge in trading volume and price movement. On 2nd September 2025, the stock hit the upper circuit at ₹0.38, up 2.7% from the previous close.

Strategic Expansion in Steel Trading

Alongside the bonus issue, Pradhin Limited is also evaluating a strategic expansion into steel and raw material trading, with a focus on global exports1. This move aligns with India’s “Make in India” initiative and positions the company to tap into emerging trade corridors across the US-Asia and BRICS+ regions.

The expansion is expected to unlock new revenue streams and strengthen Pradhin’s presence in the international steel market—potentially driving top-line growth and improving its long-term valuation.

Financial Snapshot

Despite a sharp revenue contraction in Q1 FY26 (₹11.62 crore vs ₹132.12 crore in Q4 FY25), Pradhin posted a net profit of ₹7.17 crore, a staggering 1,950% year-on-year growth3. This profit surge, coupled with the bonus issue and expansion plans, paints a picture of a company in transition—one that’s actively repositioning itself for future growth.

Investor Outlook

Pradhin Limited Bonus Issue: While Pradhin remains a high-risk, high-volatility penny stock, the proposed bonus issue and strategic initiatives could mark a turning point. For investors, this is a moment to watch closely. If approved, the bonus shares will not only increase holdings but may also signal the company’s commitment to shareholder rewards and long-term value creation.

Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.

Read Also: