SME stock below ₹200 to be in focus on Thursday amid record date for 8:5 bonus share issue

SME stock below ₹200, DMR Hydroengineering & Infrastructures, will be in focus tomorrow as the company has set Thursday, August 28, as the record date to determine shareholder eligibility for the 8:5 bonus share issue.

The Indian stock market was closed for trading today, August 27, on account of Ganesh Chaturthi.

DMR Hydroengineering's 8:5 bonus record date means that the SME stock will give existing shareholders eight free additional shares for every five shares they already own.

“This is in continuation to our letter dated July 14, 2025 and August 14, 2025 intimating the approval by the members for issue of Bonus equity shares in the ratio of 8:5. In this regard, we wish to inform that the Company has fixed Thursday, August 28, 2025 as the Record Date for the purpose of determining the equity shareholders of the Company eligible for bonus equity shares of the Company.” DMR Hydroengineering & Infrastructures said in an exchange filing dated August 20, 2025.

The record date for August 28 means that only the investors holding the SME stock at the close of trading on Tuesday, August 26, will be entitled to receive the bonus shares.

Since Wednesday, August 27, is a stock market holiday in observance of Ganesh Chaturthi, the last date to purchase shares of the company to qualify for the corporate action was Tuesday, August 26.

Under India’s T+1 settlement system, investors need to purchase shares at least one trading session ahead of the record date to be eligible for the bonus issue. Buying on the record date will not allow the shares to reflect in the demat accounts of the investors.

A bonus issue is the distribution of free shares to eligible shareholders. The share price typically adjusts in proportion to the bonus ratio at the ex-date, though the overall value of holdings remains unchanged.

The bonus share issuance will be funded through the company’s free reserves and securities premium. Following this allotment, the company’s paid-up share capital will increase from ₹3.98 crore to ₹10.37 crore.

For the financial year ended March 31, 2025, DMR Hydroengineering & Infrastructures reported a net profit of ₹1.97 crore, marking a 29% increase from ₹1.53 crore in the same period a year ago.

The company witnessed a growth of 49.09% in its revenue from operations, i.e., from ₹7.02 crore in the previous financial year 2023-24 to ₹10.46 crore during the financial year 2024-25.

BSE-listed SME stock DMR Hydroengineering & Infrastructures ended Tuesday's trading session at ₹164.70, its 5% lower price band, amid the Indian stock market selloff.

However, despite the decline in the last trading session, the SME stock below ₹200 has gained 15% in the last one week following the announcement of the bonus share record date.

Over the last three years, DMR Hydroengineering & Infrastructures' stock has added 669%, delivering multibagger returns and significantly outperforming the Sensex’s 37% rise during the same period. Even on a two-year basis, it delivered a 132% gain compared with the index’s 24% growth.

The firm's one-year returns fell slightly by 0.98%; however, it registered gains over six months.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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