Mold-Tek Packaging approves 1:1 bonus issue, US$0.031/share final dividend

INDIA – Mold-Tek Packaging has approved a 1:1 bonus share issue and a final dividend of ₹3 (US$0.031) per share for FY26, with the company set to issue 3.32 crore new shares from its free reserves and increase authorised capital to ₹40 crore (US$4.79 million).

The board, at its meeting on 26 August 2026, recommended that shareholders receive one bonus equity share with a face value of ₹5 (US$0.052) for every fully paid-up share held as on the record date. 

The company will issue 3.32 crore bonus equity shares amounting to ₹16.61 crore (US$1.99 million) from its free reserves as of 31 March 2026, increasing the paid-up share capital to ₹3 (US$0.031)3.22 crore (US$3.98 million). 

The authorised share capital has been raised from ₹20 crore (US$2.40 million) to ₹40 crore (US$4.79 million), divided into 8 crore equity shares of ₹5 (US$0.052) each. 

Dividend and Market Response

The board also recommended a final dividend of ₹3 (US$0.031) per equity share, representing 60% of the face value, for the financial year ended March 2026. 

The dividend will be declared at the company’s Annual General Meeting scheduled for 21 September 2026. 

Following the announcement, shares of Mold-Tek Packaging gained over 4% on the BSE.

The company operates 12 manufacturing units across India with an installed injection-moulding capacity exceeding 63,000 TPA. 

The bonus issue is expected to be implemented within two months from the date of the board meeting, subject to shareholder approval.

Financial Position and Outlook

Mold-Tek Packaging maintains a manageable debt profile with a debt-to-EBITDA ratio of approximately 1.25x, suggesting the company is not overly dependent on borrowings and providing financial flexibility. 

The company operates in the highly competitive packaging sector, facing inherent risks such as raw material price volatility and shifting demand patterns, with profit margins fluctuating depending on polymer costs and the company’s ability to pass costs on to customers. 

The corporate actions are currently subject to approval by shareholders at the upcoming annual general meeting, with shareholders monitoring whether the company can maintain its margin performance as it expands its capital base, and looking for updates on the specific record date that determines eligibility for the bonus shares and dividend.

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