News

Sandur Manganese and Iron Ores Limited has announced a bonus issue of shares in the ratio of 2:1, setting September 23 as the date for allotment. The company has also fixed the record date for this corporate action, which is an important event for its shareholders and prospective investors.

A bonus issue is a method used by companies to reward their shareholders by issuing additional shares free of cost, based on the number of shares they already hold. For Sandur Manganese, the 2:1 ratio means that investors will receive two additional shares for every one share they currently own. This move highlights the company’s approach toward enhancing shareholder value and improving the liquidity of its stock in the market.

What is a Bonus Issue?

A bonus issue, also known as a scrip issue or capitalization of reserves, is when a company issues free additional shares to its shareholders. Instead of paying cash, the company converts a portion of its reserves or surplus into equity capital. The distribution is proportionate to existing shareholding.

For example, in Sandur Manganese’s case, an investor holding 100 shares will receive 200 more shares after the bonus issue. Post-allotment, the shareholder’s total holding will increase to 300 shares. Importantly, the overall value of the investment does not change immediately after the bonus; only the number of shares and the price per share adjust accordingly.

Sandur Manganese’s Bonus Issue: Key Highlights

1. Bonus Ratio: 2:1 (two new shares for every one held).
   
2. Record Date: The company has set the record date to identify eligible shareholders. Only those holding shares as of the record date will be entitled to receive bonus shares.
   
3. Allotment Date: The bonus shares are scheduled to be allotted on September 23.
   
4. Purpose: Typically, such corporate actions are aimed at rewarding shareholders, improving liquidity, and making the stock more affordable for small investors.

Impact on Shareholders

For shareholders, the immediate effect is an increase in the number of shares they hold. However, since the market adjusts the share price to account for the increase in outstanding shares, the overall market capitalization of the company remains broadly the same.

Let’s illustrate this with a simple example:

• Suppose the share price of Sandur Manganese before the bonus issue is ₹3,000.
  
• An investor holds 10 shares, amounting to ₹30,000 in value.
  
• After the 2:1 bonus, the investor will hold 30 shares.
  
• The market will adjust the price per share to around ₹1,000 to reflect the increased number of shares.
  
• The total value of the investment remains ₹30,000.
  

Thus, the bonus issue does not increase immediate wealth but provides benefits such as higher liquidity and more tradable shares in the market.

Why Companies Issue Bonus Shares

Companies may choose to issue bonus shares for several reasons:

• Strengthening investor confidence: Issuing bonus shares can be seen as a signal that the company has strong reserves and a positive outlook.
  
• Improving stock liquidity: With more shares in circulation and a reduced per-share price, trading activity can increase.
  
• Making shares more affordable: Lower per-share prices can attract more retail investors who may find the stock more accessible.
  
• Rewarding shareholders: Instead of distributing profits as dividends, companies sometimes prefer issuing bonus shares as a way of rewarding investors.
  

Considerations for Investors

While a bonus issue is generally viewed positively, investors should keep a few points in mind:

1. No change in intrinsic value: The wealth of shareholders does not change right after the issue. The benefit lies mainly in liquidity and accessibility.
   
2. Long-term outlook matters: The bonus itself should not be the sole reason to invest. The company’s business fundamentals, earnings growth, and industry trends are more important.
   
3. Possible increase in volatility: In the short term, stock prices may witness movements due to increased activity and investor sentiment around the record and allotment dates.
   

Sandur Manganese’s Position

Sandur Manganese and Iron Ores Limited has been engaged in the business of mining manganese and iron ores, along with related activities. Its decision to issue a 2:1 bonus reflects confidence in its reserves and balance sheet. Shareholders will be watching how the company continues to perform operationally and financially after the allotment of bonus shares.

Conclusion

The 2:1 bonus issue by Sandur Manganese marks an important step for its shareholders. With the record date fixed and allotment scheduled for September 23, investors can look forward to receiving additional shares in proportion to their current holdings. While the immediate financial value may not change, the bonus issue provides benefits in terms of liquidity, accessibility, and investor engagement.

For long-term investors, the key will be to assess the company’s performance beyond the bonus announcement and focus on its fundamentals, as these ultimately drive shareholder returns.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The much-awaited Urban Company IPO has now moved into a crucial phase with allotment finalisation completed. Investors who subscribed to the issue are now keen to check their allotment status, understand the refund timeline, and track when shares will be credited to their demat accounts. The listing details are also of significant interest as the stock makes its market debut.

This blog provides a detailed breakdown of the allotment process, how to check your application status, refund timelines, demat account credits, and key listing details for the Urban Company IPO.

Allotment Finalisation

After the close of the subscription period, the basis of allotment has been finalised. This process determines which investors receive shares and in what quantity. The allotment ratio varies across investor categories, such as:

• Qualified Institutional Buyers (QIBs) – A significant portion is reserved for institutional investors like mutual funds, insurance companies, and foreign institutional investors.
  
• Non-Institutional Investors (NIIs) – High-net-worth individuals fall under this category, and allotment here depends on demand and oversubscription levels.
  
• Retail Individual Investors (RIIs) – A fixed percentage of the issue is reserved for small investors who apply within the retail limit.
  
• Employees and Other Reserved Categories – Some IPOs also have a portion reserved for employees or strategic investors, depending on the offer structure.
  

The allotment ensures fair distribution across categories while maintaining regulatory requirements.

How to Check IPO Allotment Status

Investors can check the Urban Company IPO allotment status through multiple methods. The status shows whether shares have been allotted and how many have been credited. Common ways include:

1. Registrar’s Website – The registrar of the IPO usually provides an option to check allotment status by entering the application number, PAN, or DP/Client ID.
   
2. Stock Exchanges – The allotment details are also updated on the BSE and NSE IPO application tracking sections, where investors can check the status using their PAN or application ID.
   
3. Broker Platforms – Many brokerage apps and online trading platforms also display allotment status once the registrar confirms the final list.
   

By checking allotment, investors quickly know whether they received shares or their application funds will be refunded.

Refunds for Non-Allottees

For those who did not receive shares, the refund process is initiated immediately after allotment finalisation. Refunds usually happen through:

• UPI Mandates – For retail investors who applied via UPI, blocked funds are released once the allotment process ends.
  
• ASBA Accounts – Investors who applied via ASBA (Application Supported by Blocked Amount) see the lien removed on their bank accounts, making the funds available again.
  
• Refund to Linked Bank Accounts – In case of partial or no allotment, refunds are directly credited back to the applicant’s bank account linked with the IPO application.
  

Refunds are typically completed within a day or two after allotment finalisation, ensuring investors can use the money for other opportunities.

Credit of Shares to Demat Accounts

For successful allottees, the shares of Urban Company will be credited directly to their demat accounts. The credit date generally falls one working day before the listing. Investors can check their demat account statements or brokerage app holdings to confirm whether shares have been credited.

This step is important because only after shares are credited can investors sell or trade them once the stock is listed.

Listing Details

The final step in the IPO process is the listing of Urban Company shares on the stock exchanges. Listing provides the first opportunity for investors to trade their shares in the secondary market.

Key aspects of listing include:

• Listing Date – The shares are expected to list within a few days of allotment finalisation. The exact date is communicated in advance.
  
• Exchanges – The shares will be listed on both the BSE and NSE, providing liquidity and access to a broad investor base.
  
• Price Discovery – On the listing day, the opening price is determined through the pre-open call auction session, balancing demand and supply.
  

Investors watch this closely to see how the market values Urban Company compared to its IPO issue price.

What Investors Should Keep in Mind

The allotment phase is a critical juncture in the IPO journey, but investors must consider a few important points:

1. Partial Allotment – Even if you applied for higher lots, you may receive fewer shares depending on demand and oversubscription levels.
   
2. Refund Timelines – Always verify that refunds are processed in case of non-allotment to avoid blocked funds longer than expected.
   
3. Demat Verification – Double-check that the shares are visible in your demat account before the listing date.
   
4. Market Volatility – Listing gains or losses depend on overall market sentiment and demand for the stock. Investors should prepare for both outcomes.
   

Conclusion

With the Urban Company IPO allotment finalised, investors now move to the next stages of refund processing, share credit, and stock listing. Those allotted shares will look forward to the listing date for potential opportunities, while non-allottees will see their funds refunded promptly.

This structured process ensures transparency and efficiency, giving every investor clarity on their investment journey. Whether you received shares or not, staying updated on the listing and future performance of Urban Company will be important for making informed decisions.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The deadline for filing Income Tax Returns (ITRs) for Assessment Year (AY) 2025-26, covering income earned during the financial year 2024-25, is today, 15 September 2025. The last date was initially set for 31 July 2025, but was extended due to changes in ITR forms and updates required in the system. With no further extensions announced, taxpayers who have not yet filed their returns should complete the process before the end of the day.

Official Deadline and Clarifications

In recent days, speculation on social media suggested that the ITR filing deadline would be extended to 30 September 2025. The Income Tax Department has clarified that these claims are false. The final date to file ITRs without penalty remains 15 September 2025.

Taxpayers are advised to rely only on official announcements from the Income Tax Department. Filing after the due date is still possible, but with consequences in terms of fees, interest, and loss of certain benefits.

Belated Returns and Penalties

If you miss the deadline today, you can still file a belated return until 31 December 2025. However, late filing attracts penalties under Section 234F of the Income Tax Act.

• For taxpayers with income above ₹5 lakh, the penalty is ₹5,000.
  
• For taxpayers with income up to ₹5 lakh, the penalty is ₹1,000.
  

Additionally, any unpaid tax liabilities will attract interest charges. Late filers also lose the ability to carry forward certain losses, except for those from house property, which can still be carried forward.

Tax Department Assistance

To support taxpayers on the final day, the Income Tax Department has kept a 24×7 helpdesk operational. Assistance is being provided through multiple channels, including phone calls, live chats, WebEx sessions, and social media platforms.

The department has encouraged taxpayers to file early in the day rather than waiting until the last hour, as heavy traffic on the income tax portal often leads to delays and glitches close to the deadline.

Key Steps Before Filing

If you have yet to file your return, here are the immediate steps to follow:

1. Collect documents: Keep Form 16, Form 26AS, Annual Information Statement (AIS), and other financial documents ready. Ensure bank details, PAN, and Aadhaar are correct and linked.
   
2. Choose the correct ITR form: Select the right form based on your income sources. Salaried individuals with limited income usually file ITR-1, while those with capital gains, business income, or foreign income may need to use ITR-2, ITR-3, or ITR-4.
   
3. Pay pending taxes: If you owe any self-assessment tax, pay it before filing to avoid additional interest.
   
4. File and e-verify: Filing alone is not enough. You must e-verify your return through Aadhaar OTP, net banking, or electronic verification code. Returns not verified within the specified time are treated as invalid.
   
5. Check for errors: Ensure accuracy in income details, deductions, and exemptions claimed. Mistakes may lead to notices or delays in refunds.
   

Common Issues and Solutions

On the final day of filing, portal slowdowns and errors are often reported. Taxpayers facing such issues are advised to clear their browser cache, try alternate internet connections, or file during non-peak hours, such as early morning or late night. If the problem persists, contacting the tax department’s helpdesk can provide direct solutions.

Another common issue is incorrect bank account details. Taxpayers should ensure that the bank account provided is active and pre-validated on the income tax portal for faster refunds.

What’s at Stake

Filing on time not only avoids penalties but also ensures faster processing of returns and quicker refunds. Delayed filing can complicate financial planning, especially for those applying for loans or credit facilities, as lenders often request ITR acknowledgments as proof of income.

Taxpayers who rely on carry-forward of business or capital losses should be extra cautious. Missing today’s deadline means losing the right to offset those losses against future income, potentially leading to higher tax burdens in subsequent years.

Final Word

With the deadline ending today, taxpayers are left with limited time to complete the process. The Income Tax Department has provided 24×7 assistance to help resolve last-minute challenges, but the responsibility rests with individuals to act promptly.

If you have not yet filed your return, it is advisable to finalize the paperwork, submit the return, and complete e-verification without delay. Acting today will help you avoid penalties, protect future tax benefits, and maintain compliance.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In a historic shift at the very top of the global wealth rankings, Oracle co-founder Larry Ellison has become the world’s richest person, with an estimated net worth of $393 billion. This milestone marks a significant moment in the business and technology world, as Ellison surpasses Tesla and SpaceX chief Elon Musk, who has long held the crown of the world’s wealthiest.

This development is not just about numbers—it also reflects the evolving dynamics of global technology, innovation, and wealth creation. Let’s break down how Ellison reached this incredible milestone and what it means for the future.

Who is Larry Ellison?

Larry Ellison, born in 1944 in New York City, is one of the most iconic figures in Silicon Valley. Raised in a modest household, Ellison dropped out of college but went on to create one of the most powerful companies in enterprise technology—Oracle Corporation.

Founded in 1977, Oracle started as a small software firm focusing on database management systems. Over the decades, under Ellison’s leadership, it grew into a global powerhouse, serving thousands of corporations, governments, and institutions worldwide. Today, Oracle is a key player in cloud computing, artificial intelligence (AI), and enterprise software solutions.

Ellison’s rise from humble beginnings to becoming the world’s richest individual is often cited as the ultimate example of entrepreneurial grit and long-term vision.

How Did Ellison Overtake Elon Musk?

Ellison’s surge in net worth comes on the back of Oracle’s soaring stock price and his massive personal holdings in the company. As Oracle continues to expand aggressively in cloud computing and AI-powered services, investor optimism has driven the company’s market capitalization to new highs.

Meanwhile, Elon Musk’s wealth—primarily tied to Tesla and SpaceX—has seen volatility due to fluctuating EV demand, regulatory challenges, and slowing sales growth in key markets. While Musk remains an innovative force with ventures ranging from space exploration to brain-computer interfaces, the market’s current momentum favors Oracle and Ellison’s fortune.

Some key factors behind Ellison’s recent wealth surge include:

• Oracle’s Cloud Boom: The company has secured major contracts for cloud infrastructure and AI solutions, directly competing with giants like Amazon Web Services and Microsoft Azure.
  
• AI Integration: Oracle’s partnerships with AI leaders have strengthened its role in the ongoing AI revolution.
  
• Stable Business Model: Unlike the consumer-facing volatility in the EV industry, Oracle’s enterprise software provides steady, recurring revenues.
  
• Personal Investments: Ellison also holds significant stakes in Tesla, which has further added to his wealth over the years.
  

The Bigger Picture: Tech Titans and Shifting Wealth

Ellison’s rise highlights how quickly fortunes can shift in the fast-changing world of technology. For years, the richest-person title has been dominated by names like Elon Musk, Jeff Bezos, and Bernard Arnault. Ellison’s entry at the top underscores the growing importance of enterprise software and cloud computing, industries that may not always make daily headlines like electric cars or luxury fashion but are critical to the global economy.

Moreover, this change reflects how AI and data-driven services are creating massive wealth opportunities. Oracle’s ability to integrate its database and cloud expertise into the AI ecosystem has positioned it as a long-term winner, propelling Ellison’s net worth upward.

What Sets Larry Ellison Apart?

Unlike Musk, who often takes a high-profile public stance on politics, technology, and social issues, Ellison has maintained a relatively private lifestyle. However, he is known for his bold personality, competitive streak, and love for luxury—owning estates in Malibu, a private island in Hawaii, and one of the world’s largest yachts.

Ellison also has a strong passion for sailing and has invested heavily in the sport, making him a unique figure among billionaires. His personal style may be different from Musk’s headline-grabbing antics, but his focus on long-term business fundamentals has now placed him at the very top of the wealth hierarchy.

Looking Ahead

The title of the world’s richest person often shifts as markets rise and fall, but Larry Ellison’s achievement is monumental. It represents the culmination of nearly five decades of building Oracle into a global technology giant.

For investors, entrepreneurs, and the business world at large, Ellison’s rise to the top serves as a reminder that enterprise technology, AI, and cloud solutions are reshaping the world—and creating immense wealth in the process.

Whether Elon Musk regains the top spot in the coming months or Ellison holds onto it longer, one thing is clear: the race among tech titans will continue to define the global economy and inspire generations of innovators.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

On September 10, 2025, Urban Company, India’s leading tech-enabled home-services marketplace, opened its much-awaited ₹1,900 crore IPO. The offering comprises a fresh issue worth ₹472 crore and an Offer for Sale (OFS) of ₹1,428 crore by existing shareholders. With a price band of ₹98–₹103 per share, this IPO is one of the most talked-about listings of the year, especially with the Grey Market Premium (GMP) being around 35%.

So, what’s driving the hype, and should investors subscribe or skip this issue?

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Grey Market Buzz: A Promising Start

Even before the IPO opened, Urban Company’s shares were commanding a strong premium in the unlisted market. The GMP rose steadily to about ₹35–₹36 per share, implying a listing price close to ₹139–₹140. For investors, this suggests a potential 30–35% gain right out of the gate.

While GMP is not always a reliable predictor of actual listing performance, it does reflect strong early demand and market optimism.

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Subscription Trend: Investors Rush In

The IPO got off to a flying start, being fully subscribed within the first hour of bidding. The retail portion was oversubscribed more than three times, while the non-institutional segment also saw strong interest. Even Qualified Institutional Buyers (QIBs), who often move later in the bidding cycle, showed healthy participation.

Such strong demand across categories highlights Urban Company’s appeal as a consumer-tech story with both retail excitement and institutional backing.

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Strong Anchor Investor Participation

Ahead of the IPO, Urban Company raised ₹854 crore from anchor investors at the upper end of the price band. Big names such as sovereign wealth funds, global asset managers, and pension funds participated—underscoring institutional confidence in the business model and its long-term growth potential.

This anchor book allocation not only boosts credibility but also signals that large investors are willing to back Urban Company despite premium valuations.

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Company Overview: A Platform for Everyday Needs

Founded in 2014, Urban Company has revolutionized the way people access home services—be it plumbing, cleaning, beauty, appliance repair, or grooming. The company connects customers with trained professionals through its digital platform, bringing transparency, convenience, and reliability to a traditionally unorganized market.

Urban Company has also expanded internationally, with operations in markets like the UAE, Singapore, and Saudi Arabia. This global footprint gives it additional revenue streams and growth avenues.

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Financial Snapshot: First Year of Profitability

For years, Urban Company invested heavily in expansion, training, and customer acquisition, often reporting losses. However, in FY25 the company turned profitable for the first time, posting a net profit of around ₹240 crore (including deferred tax credits) and a pre-tax profit of about ₹28 crore.

Revenue grew sharply, climbing 38% year-on-year to over ₹1,140 crore. With improving margins and operating leverage, the company appears to be on a path toward sustainable profitability—a key differentiator from other new-age tech listings in recent years.

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Valuations: On the Higher Side

At the upper price band of ₹103, Urban Company’s implied valuation stands at nearly ₹15,000 crore. This translates into a Price-to-Earnings (P/E) multiple of ~65x and a Price-to-Sales (P/S) multiple of ~13x based on FY25 financials.

These multiples are significantly higher than traditional service companies, but investors are willing to pay a premium for Urban Company’s growth trajectory, brand recognition, and asset-light business model.

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Strengths vs. Weaknesses:

Strengths:

• Market leader in India’s fragmented home-services space.
  
• First year of profitability with strong revenue growth.
  
• Large, underpenetrated market with rising demand for organized players.
  
• Strong brand recall and repeat customer base.
  
• High-profile anchor investors backing the IPO.
  

Weakness:

• Valuations appear stretched, leaving limited margin for error.
  
• Competition from smaller players and global entrants could erode market share.
  
• Heavy reliance on continued demand growth in urban centers.
  
• OFS component is large, meaning most proceeds go to selling shareholders rather than business expansion.
  

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Should You Apply?

The Urban Company IPO offers both short-term listing gain potential and long-term growth prospects.

• If your goal is quick returns, the strong GMP and oversubscription trends make this IPO attractive. Listing gains of 30% or more look achievable.
  
• For long-term investors, the company presents a compelling growth story, but premium valuations demand patience. Any execution challenges or slower-than-expected growth could impact stock performance post-listing.
  

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Final Verdict

Urban Company’s IPO stands out as a landmark issue in India’s consumer-tech space. With profitability achieved, strong anchor support, and a growing demand base, the fundamentals are promising. However, the high valuation calls for caution.

Aggressive investors with a higher risk appetite may consider subscribing for both listing gains and long-term exposure. Conservative investors, on the other hand, may prefer to wait for post-listing price stability before entering.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In today’s markets, the drama was hard to miss — from stocks tumbling to regulatory announcements making headlines. Shares of BSE Ltd, Angel One, and Motilal Oswal Financial Services fell nearly 7%, after SEBI Chairperson hinted at extending the tenure of equity derivative contracts — a move that could impact F&O trading volumes and revenues for major players. At the same time, SEBI cracked down on finfluencers and floated the idea of a regulated platform for pre-IPO trading, signaling a stronger push toward making investing safer and more structured.

Meanwhile, IDBI Bank saw its stock slide over 2% after updates on the government and LIC’s proposed stake sale, a move aimed at improving management efficiency and reducing the fiscal burden.

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SEBI’s Push to Rein in Speculation

India’s Futures & Options (F&O) market has seen explosive growth, now dominating capital markets. To put this in perspective:

• On NSE, the share of options trading has jumped from 72% to 99% in the past decade.
  
• Retail participation is at record highs, with demat accounts quadrupling to 192 million by March 2025.
  
• Discount brokers, product innovations like weekly options, and financialization of household savings have fueled this boom.
  

But here’s the flip side — reports show 90%+ retail traders lose money in F&O. To curb excessive speculation, SEBI is considering extending derivatives contract tenure, making it harder for short-term speculative traders to dominate the market.

Recent measures already in place include:

• Limiting weekly expiries to one benchmark index.
  
• Doubling or tripling lot sizes to raise entry barriers for small traders.
  
• Shifting expiry days to avoid overlaps.
  
• Tightening intraday risk checks and margin requirements.
  

The goal is clear: derivatives should return to their true purpose — hedging and risk management, not reckless speculation.

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Impact on Major Market Players

Angel One

With ~45% of its Q1FY26 gross income coming from F&O, Angel One is directly exposed to SEBI’s reforms. Higher margins and larger lot sizes may reduce retail trading frequency, impacting revenue growth. However, diversification into mutual funds, insurance, and wealth products provides some cushion.

BSE Ltd

BSE re-entered the derivatives segment in 2023 and rapidly captured nearly 19% share by Q4FY25. Derivatives have been driving its profitability, but stricter SEBI rules — especially restrictions on weekly expiries — could slow its momentum. The long-term challenge will be attracting and retaining traders under a more regulated setup.

Motilal Oswal Financial Services (MOFSL)

MOFSL has ~8% market share in derivatives premium turnover. Like others, it faces potential volume decline. However, its diversified model — spanning wealth management, asset management, and investment banking — makes it better positioned to absorb the impact.

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SEBI vs Finfluencers & Pre-IPO Trading

SEBI is also cracking down on finfluencers — with raids at Avadhut Sathe’s Karjat Academy highlighting its vigilance. During the pandemic, finfluencers rose in popularity, often pushing aggressive F&O strategies. With most retail traders losing in derivatives, SEBI’s move aims to protect investors from unsolicited and misleading advice.

Another landmark development: SEBI is considering a regulated pre-IPO trading platform. Currently, unlisted shares trade in opaque, unregulated markets. A monitored exchange-like system would bring transparency, fairness, and investor protection.

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IDBI Bank: Privatization in Motion

On the banking front, IDBI Bank’s shares slipped 2%+ after DIPAM Secretary confirmed that qualified bidders are completing due diligence for its strategic stake sale.

Key details:

• The government and LIC together hold 94%+ equity, planning to offload 60.72% combined stake (30.48% by Govt, 30.24% by LIC).
  
• The deal includes transfer of management control.
  
• Privatization is part of the ₹47,000 crore FY26 divestment target, aimed at reducing fiscal pressure and boosting efficiency.
  

Despite short-term stock weakness, IDBI Bank’s fundamentals are improving:

• Net Profit up 17% YoY to ₹2,007 crore.
  
• Gross NPA down to 2.93% and Net NPA at just 0.21%.
  
• ROA at 2.01%, supported by a healthy CASA ratio of 44.65%.
  

Privatization could bring in new promoters, global best practices, and stronger asset quality, unlocking long-term value for investors.

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Final Take

SEBI’s actions highlight a regulatory shift toward stability, transparency, and investor protection. While brokers and exchanges heavily reliant on F&O may face near-term headwinds, the market overall could benefit from a safer and more balanced ecosystem.

For investors, the message is clear: the era of high-leverage, low-cost F&O speculation may be fading. The future belongs to structured investing, delivery-based trades, and trusted financial advice.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Bemco Hydraulics, a small-cap company in the hydraulics equipment sector, has become the talk of the market after delivering extraordinary returns of 1672% in just one year. Now, the company is once again in focus as it has announced two major corporate actions – a 1:1 bonus issue and a 10:1 stock split. The record date to determine eligible shareholders has been fixed for Friday, August 22, which means investors must buy shares before the market closes today to qualify.

Source: Economic Times

These moves are expected to reward existing shareholders, increase liquidity in the stock, and make the shares more affordable for retail investors.

Bemco Hydraulics’ Stellar Performance

Bemco Hydraulics is an engineering company that designs and manufactures hydraulic presses, machines, and systems for industrial applications. Based in India, it has established a niche presence in the hydraulics sector. 

Over the past year, Bemco Hydraulics has surprised investors with its incredible rally. The company’s stock has delivered 1672% returns in just 12 months, turning into a true multibagger. For instance, an investment of ₹1 lakh a year ago would now be worth over ₹17 lakh. Such steep growth has placed the company in the spotlight and raised interest among both institutional and retail investors.

Source: BSE

Details of the Bonus Issue

The company has announced a 1:1 bonus issue, which means shareholders will receive one additional share for every share they currently hold. For example:

• If an investor holds 50 shares, they will receive 50 extra shares after the bonus issue.
• Their total holding will therefore increase to 100 shares.

A bonus issue does not change the overall value of an investor’s portfolio immediately, but it increases the number of shares, making trading easier and boosting liquidity in the market.

Stock Split in the Ratio of 10:1

Along with the bonus, Bemco Hydraulics has also approved a stock split in the ratio of 10:1. This means the face value of each share will be reduced from ₹10 to ₹1, and the number of shares will increase tenfold.

For instance:

• Before the split, if an investor holds 100 shares of face value ₹10 each, the total face value is ₹1,000.
• After the split, they will hold 1,000 shares of face value ₹1 each, keeping the total value unchanged.

This makes the stock more accessible to small investors, as the price per share will be lower post-split.

Source: Economic Times

Combined Impact of Bonus and Stock Split

When both the bonus issue and stock split are applied together, the increase in the number of shares is even more significant. Let us take an example for better clarity:

• Suppose an investor holds 50 shares of Bemco Hydraulics (face value ₹10 each).
• After the 1:1 bonus issue, the holding will become 100 shares.
• Following the 10:1 stock split, the number of shares will further increase to 1,000 shares of face value ₹1 each.

This shows how both actions together multiply the number of shares held, even though the overall value of the investment remains the same initially.

Let’s look at the financials of the company. 

BEMCO Hydraulics

Market Cap	CMP	PE	ROCE	ROE	Revenue(for quarter ending June 2025)	Profit(for quarter ending June 2025)
₹ 753 Cr	₹3,444	55.8	23.7%	19.9%	11.71 Cr	1.44 Cr

Source: Screener

Why Do Companies Announce Bonus Issues and Stock Splits?

Corporate actions like bonus issues and stock splits are not just cosmetic moves. They serve several purposes:

1. Rewarding Shareholders – Companies issue bonus shares to acknowledge investor support and reward them without any additional cost.
2. Increasing Liquidity – With more shares in circulation, trading volumes rise, which can reduce volatility.
3. Improving Accessibility – A stock split lowers the price per share, making it easier for retail investors to participate.
4. Boosting Investor Confidence – Such announcements often indicate that the company is confident about its financial strength and growth prospects.

What Should Investors Do?

With August 22 as the record date, investors who want to benefit from these corporate actions must ensure they own shares before today’s market closing. Only shareholders on record will be eligible for the bonus and split.

However, investors should also understand that:

• The immediate value of their investment will not change after the adjustments.
• The real benefit lies in better liquidity, easier trading, and possibly higher demand from retail investors in the future.
• The company’s long-term performance and fundamentals remain the key factors to watch.

Market Expectations

Given the huge returns already delivered by Bemco Hydraulics, analysts expect significant interest in the stock around the record date. Retail investors may find it more attractive once the stock becomes more affordable post-split. However, experts also advise caution as stocks that rally too sharply in a short time can be volatile.

Conclusion

Bemco Hydraulics has rewarded its shareholders with 1672% returns in just one year, and now, through a 1:1 bonus issue and a 10:1 stock split, the company is further enhancing shareholder value. For existing investors, this move is a welcome reward, while for new investors, it opens the door to participate at lower entry prices.

While these corporate actions make the stock more liquid and accessible, investors must remember that long-term gains will ultimately depend on the company’s business performance and industry outlook.

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