LKP Finance board approves 4:1 bonus issue; here’s how stock reacted
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Shares of LKP Finance remained in focus today after the board of the diversified financial services company approved bonus issue for existing shareholders and an increase in authorised share capital, subject to requisite approval.
Despite the positive development, LKP Finance shares declined up to 5% to hit an intraday low of ₹1,042, while its market capitalisation slipped below ₹1,600 crore. Early today, the smallcap stock opened 4.8% higher at ₹1,149 against the previous closing price of ₹1,096.40 on the BSE. The counter is down as much as 9.3% from the day’s high levels.
The shares of LKP Finance recently touched its 52-week high of ₹1,179.80 on January 12, 2026, rebounding sharply by 473% from its 52-week low of ₹205.89 hit on January 28, 2025. The stock price has more than doubled in the past six months; and added over 13% in the past one month.
In a post-market filing on Monday, LKP Finance said its board, at a meeting held on January 19, 2026, approved an increase in the company’s authorised share capital from ₹30 crore to ₹110 crore, subject to shareholder consent.
The board also cleared the issuance of bonus equity shares in the ratio of 4:1, meaning shareholders will receive four fully paid-up equity shares of face value ₹10 each for every one existing share held as on the record date.
January 2026
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Following the bonus issue, the company’s paid-up share capital will rise to ₹76.80 crore, comprising 7,68,08,250 equity shares, from the current ₹15.36 crore comprising 1,53,61,650 shares, the company said in a release.
The bonus issue will be implemented through capitalisation of ₹61.44 crore from the securities premium account, against an available share premium balance of ₹126.59 crore as per unaudited financial statements for the year ended December 31, 2025, it added.
“The Bonus shares shall be issued out of Securities Premium Account of the Company as at December 31, 2025,” the release said.
The bonus shares are expected to be credited or dispatched within two months of the board meeting, on or before March 19, 2026.
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