Orient Tech Shares: There was a huge rise in the shares of IT sector company Orient Technologies today on December 30. During trading, the company’s shares jumped more than 13 percent to Rs 373.95. This is the highest level of this stock in the last one month. This rise in the shares of Orient Technologies has come after the announcement of issuing bonus shares.
The company said in a communication sent to the stock exchanges that the company’s decisions to issue bonus shares in the ratio of 1:10 have been approved by the shareholders. Orient Tech had earlier announced in November that its board of directors had approved the proposal to issue 10 bonus shares at 1 share. Now the company said in its exchange filing that the shareholders have also given the green signal to this proposal through the postal ballot process.
The company described this as an important milestone in its “journey towards sustainable value creation”. According to Orient Tech, this support coupled with strong shareholder participation reflects investor confidence based on the company’s financial discipline, stable operating model and strong positioning in the high-growth technology segment.
How will the issue of bonus shares take place?
The company will implement this bonus issue by capitalizing an amount of ₹4.16 crore from the Securities Premium Account. At present, the record date for bonus shares has not been announced. Only those investors who hold shares of the company on the record date will be eligible for this bonus issue.
What does this mean for shareholders?
Issuance of bonus shares is generally considered a signal of confidence in the company’s strong balance sheet and future growth. Bonus issue does not change the market capitalization of the company, but increases the number of shares. The price of shares is adjusted in the same proportion. This increases the liquidity of the share and makes it relatively more affordable for new investors.
From the investors’ point of view, bonus shares are “free shares” that the company issues from its reserves. This move often strengthens investor confidence and can lead to better participation in the stock in the long run.
Management response
Ajay Sawant, Chairman and Managing Director of the company, said that the approval of the bonus issue is an affirmation of the shareholders’ confidence in the company’s business fundamentals, governance standards and long-term vision. “This reflects our balance sheet strength and continued strong execution as we continue to invest in future-ready areas such as cloud, cybersecurity and managed services to create long-term and sustainable value for all stakeholders,” he said.
stock performance
Orient Tech shares have gained about 10% in the last 5 trading days, while about 4% in the last one month. However, the stock has slipped about 24% so far in 2025. The current P/E ratio of the company is around 27.
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