Gujarat Toolroom Approves 5:1 Bonus Issue Amid Record Growth and Expansion Plans

Gujarat Toolroom’s board of directors has approved a generous 5:1 bonus share issue, rewarding shareholders with five additional shares for every one share they own. The decision, announced on Monday, underscores the company’s commitment to investor satisfaction. However, the move awaits final approval from its members.
As per the company’s filing, the bonus shares are expected to be credited on or before March 6, 2025. This initiative will utilize ₹116 crore from the securities premium account and retained earnings, significantly increasing the paid-up share capital from ₹23.20 crore to ₹139.23 crore.
Additionally, Gujarat Toolroom has authorized an increase in its share capital from ₹100 crore to ₹140 crore, signaling a strategic push toward future growth and expansion opportunities.
Exceptional Financial Performance
The company’s recent financial achievements further solidify investor confidence. Gujarat Toolroom reported a staggering 1,016% year-on-year growth in quarterly net profit, accompanied by a 72.65% surge in sales. These remarkable results highlight its operational efficiency and ability to scale amidst growing market demand.
Successful Fundraising via QIP
In a testament to its strong market position, Gujarat Toolroom recently raised ₹95.66 crore through a Qualified Institutional Placement (QIP). Prominent institutional investors, including Bridge India Fund, Eminence Global Fund, and Multitude Growth Funds Limited, participated in this round. Their involvement reflects robust confidence in the company’s strategic direction and growth prospects.
Focus on Green Energy
Gujarat Toolroom is also making strides in the renewable energy sector. Earlier this year, the company announced plans to develop a hybrid energy power plant in Gujarat. This innovative project aims to integrate solar, wind, and other renewable sources, demonstrating its commitment to sustainability and clean energy solutions.
By diversifying into high-growth sectors and rewarding its shareholders, Gujarat Toolroom positions itself as a dynamic player with a vision for long-term success.