Silver Touch Technologies Ltd announces Stock Split and Bonus Issue,

MySandesh
3 Min Read

Shares of small-cap IT company Silver Touch Technologies Ltd are currently attracting strong attention. The company has announced a record date for both a 1:5 stock split and a 1:1 bonus issue, which has led to a sharp rise in the stock price.

During the trading session, the company’s market capitalization was around ₹1,708 crore. The stock hit its 5% upper circuit at ₹1,347.20, higher than the previous closing price of ₹1,283.05.

Investor sentiment remained very positive following this corporate action announcement.

Record Date and Details of Split & Bonus

The company has fixed Friday, March 6, 2026, as the record date.

First, each share with a face value of ₹10 will be split into five shares of ₹2 each (1:5 stock split).

Example: If you hold 1 share before the record date, you will have 5 shares after the split.

After the split, the company will issue bonus shares in a 1:1 ratio.

This means shareholders will receive one free share for every share held after the split.

The bonus shares will be issued from the company’s free reserves.

Financial Performance of the Company

The company has shown strong financial growth:

Revenue increased from ₹74 crore (Dec 2024) to ₹96 crore (Dec 2025) — about 29.5% growth.

Net profit rose from ₹5 crore to ₹11 crore in the same period.

ROCE: 22%

ROE: 17.6%

Debt-to-equity ratio: 0.33 (indicates healthy debt management)

Profit has grown at a CAGR of 32.8% over the past five years.

Business Overview and Segments

Founded in 1995 and headquartered in Ahmedabad, the company provides end-to-end digital transformation solutions and holds a CMMI Level 5 rating. It operates in areas such as:

Cloud services

SAP

E-governance

Software development

Analytics

The company has teams in India, the US, the UK, and Canada. So far, it has completed 4,000+ projects and served 2,000+ clients.

Revenue Contribution by Segment

Software services: 51%

E-governance: 20%

System integration: 15%

ERP implementation: 9%

Cloud & facility management: 5%

The company currently has an order book of ₹650 crore, of which 60% is recurring business and 40% is new orders.

Strong order visibility, improving financials, and recent corporate actions have increased investor interest in the stock.

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