Bonus Shares: Data center play approves rewarding over 80,000 retail shareholders

Shares of Orient Technologies Ltd. a company known for specializing in data center solutions, virtual storage, enterprise servers among other functions across verticals, gained as much as 5% on Tuesday, December 30, after the company's shareholders approved the issue of bonus shares.

In an exchange filing, the company said that its shareholders has approved the issue of bonus shares in the ratio of 1:10, which will be its first free share issue since its listing back in August last year.

This means, that eligible shareholders will be entitled to one bonus share for every 10 shares that they own as on the record date, which will be determined later.

The decision to issue bonus shares was approved by the company's board along with its results for the September quarter, back in November this year.

Orient Technologies will issue bonus shares through capitalization of ₹4.16 crore from the Securities Premium Account. The company has also received approval from the stock exchanges for the bonus issue of shares.

At the end of the September quarter, promoters of Orient Technologies had a 73.24% stake in the company.

As many as 82,000 retail shareholders, or those with authorized share capital of up to ₹2 lakh, have a 22.1% stake in the company and form a majority of the public investor base of the company. Mutual Funds do not have any exposure to the stock.

Shares of Orient Technologies are trading 10% higher on Tuesday after the shareholder approval at ₹364. The stock is up 77% from its issue price of ₹206, but is down 26% so far this year.