Power Sector Stock announces 2:1 Bonus issue for Investors

MySandesh
3 Min Read

Shares of Hindusthan Insulators & Industries Ltd are expected to remain in focus this week as the company approaches the record date for its bonus issue.

Investors who hold the stock on July 10, 2026, will be eligible to receive bonus shares under the company’s corporate action.

What Is the 2:1 Bonus Issue?

The company has announced a 2:1 bonus issue, which means shareholders will receive two additional shares for every one share they already hold.

These bonus shares are issued free of cost. Investors do not need to pay anything to receive them.

The record date for determining eligible shareholders has been fixed as July 10, 2026.

In simple terms, if your name appears in the company’s records on this date (as per settlement rules), you will receive bonus shares in your demat account.

What Happens on the Record Date?

The record date is the cut-off date used to decide who will get the bonus shares.

If you hold the stock on or before this date, you will qualify for the bonus issue.

After the bonus shares are issued, the number of shares you own increases, but the overall value of your investment usually remains the same.

This is because the stock price adjusts proportionately after the bonus issue.

In other words, bonus shares do not create immediate extra wealth, but they increase the number of shares in your portfolio.

Bonus Issue Timeline

The company has also shared the schedule for the corporate action:

July 10, 2026: Record date for eligibility

July 13, 2026: Deemed date of allotment

Bonus shares to be credited to eligible demat accounts after documents are submitted to depositories

July 14, 2026: Expected listing and trading of bonus shares

The company plans to issue up to 1.44 crore bonus equity shares under this scheme.

Q4 Results Show Strong Recovery

Hindusthan Insulators reported a strong turnaround in the March 2026 quarter.

The company posted a net profit of ₹20.91 crore, compared to a loss of ₹28.10 crore in the same quarter last year.

Revenue also increased to ₹108.15 crore, up from ₹83.32 crore a year earlier.

However, for the full financial year (FY26), the company still reported a net loss of ₹7.87 crore.

This was mainly due to an exceptional loss of ₹47.05 crore, linked to the sale of its stake in Hindusthan Speciality Chemicals Ltd to DCM Shriram Ltd.

The company noted that without this one-time loss, its annual performance would have been much stronger.

About Hindusthan Insulators

Hindusthan Insulators & Industries operates in the power infrastructure sector.

The company manufactures electrical conductors used in power transmission lines and also produces high-tension insulators used in electricity transmission and railway electrification projects.

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