Automotive component powerhouse Bosch Ltd is handing equity investors a massive liquidity boost. The company's board of directors greenlit a comprehensive capital restructuring that divides each existing equity share and layers a generous bonus issue on top. The net result multiplies an investor's share count twentyfold.
Under the approved scheme, the board will first sub-divide each equity share of face value ₹10 into five equity shares of face value ₹2 each. Once that split takes effect, Bosch will roll out a bonus issue of three fully paid-up equity shares of ₹2 each for every single ₹2 share held. To fund the bonus distribution, the board resolved to tap the company's accumulated retained earnings while expanding its overall authorized share capital. The entire exercise hinges on shareholder approval, which the company will seek through a postal ballot.
Beyond the balance sheet adjustments, Bosch posted resilient earnings for the second quarter of FY27, powered by persistent demand across passenger vehicle and commercial mobility platforms. Consolidated revenue from operations stood at ₹7,655 crore for the quarter, while consolidated net profit touched ₹840 crore.
| Financial & Corporate Action Metric | Details / Q2 FY27 Figures |
|---|---|
| Consolidated Revenue from Operations | ₹7,655 crore |
| Consolidated Net Profit | ₹840 crore |
| Pre-Split Face Value | ₹10 per equity share |
| Post-Split Face Value | ₹2 per equity share (1:5 split) |
| Bonus Ratio | 3:1 (Three ₹2 shares for every one ₹2 share held) |
| Cumulative Ratio | 20 shares for every 1 original share |
Yet the real story for market watchers lies in market float. Bosch has long traded with one of the steepest single-share price tags on Indian bourses, often pricing retail traders and smaller portfolio managers entirely out of the counter. Splitting the stock down to ₹2 and unleashing bonus units slashes entry barriers overnight. More participants can now buy in directly.
The corporate restructuring process now moves to the ballot box. Bosch will circulate postal ballot notices to all registered equity holders to secure the statutory majority required to formalize the capital increase and share allotment dates.