Silver Touch Technologies Ltd has recently been in the spotlight after the stock surged nearly 140% during December and January. Following this sharp rally, the stock has corrected and is now trading around 22% below its recent high.
Silver Touch Technologies Ltd has announced two important corporate actions for its shareholders: a stock split and a bonus issue, with the record date set for 6th March 2026. The company plans to subdivide its equity shares from a face value of ₹10 into ₹2, meaning each existing share will be split into five shares.
Along with this, the company will also issue bonus shares in a 1:1 ratio, allowing shareholders to receive one additional share for every share they hold after the split. These moves are generally aimed at improving stock liquidity and rewarding existing investors.
The company has announced two corporate actions with the record date of 6th March 2026 — a share subdivision (stock split) and a bonus issue.
First, the company will sub-divide its equity shares, where 1 share with a face value of ₹10 will be split into 5 shares with a face value of ₹2 each.
For example, if an investor holds 100 shares before the record date, after the subdivision those shares will become:
100 shares × 5 = 500 shares
After this, the company will issue bonus shares in the ratio of 1:1, meaning 1 bonus share for every 1 share held.
So after the split, the investor will have 500 shares, and the bonus issue will give:
500 bonus shares
This means the total shares after both actions will become 1,000 shares.
So in simple terms:
- Initial holding: 100 shares
- After stock split: 500 shares
- After bonus issue: 1,000 shares
What will change after Silver Touch Technologies Corporate Action
Here is what generally happens to key financial metrics after these corporate actions:
Face Value
The company is splitting the face value from ₹10 to ₹2. This means every one share will be divided into five shares. After this, the bonus issue (1:1) will further increase the number of shares.
Number of Shares
Because of the stock split and the bonus issue, the total number of shares in the market will increase significantly.
For example, if an investor holds 100 shares:
- After the stock split (1 → 5) → 500 shares
- After the 1:1 bonus → 1,000 shares
So the total shares increase, but the overall investment value remains roughly the same initially.
EPS (Earnings Per Share)
Since the number of shares increases, the EPS will decrease proportionally. The company’s total earnings do not change immediately, but those earnings are now distributed across more shares.
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ROE (Return on Equity)
The ROE usually does not change because of these corporate actions. The company’s profitability and equity base remain the same; only the share structure changes.
Key look at financial health
Silver Touch Technologies, an IT services company, has shown steady business expansion over the past decade. The company’s revenue has grown from around ₹117 crore in FY2015 to nearly ₹288 crore in FY2025, and recently reached about ₹331 crore on a TTM basis, indicating stronger growth momentum in the last few years. Along with revenue growth, the company has also improved its profitability, as operating profit and margins have gradually strengthened.
From a balance sheet perspective, the company’s reserves have consistently increased from about ₹30 crore in FY2015 to more than ₹120 crore recently, reflecting the accumulation of profits over time. However, borrowings have also risen in the recent period, which could indicate investments or expansion plans. Looking ahead, the company’s future growth will largely depend on demand in the IT services sector and emerging technologies such as artificial intelligence, although rapid AI advancements may also put pressure on industry margins.
Why the silver touch announces the stock split and bonus
Companies usually announce corporate actions like stock splits and bonus shares to make their shares more accessible to investors. When a stock price rises significantly, the per-share price can become relatively high for many retail participants. By splitting the face value and issuing bonus shares, the company increases the total number of shares in the market while reducing the price per share.
This lower price level often improves liquidity and trading activity, as more investors are able to participate in the stock. Higher participation can sometimes support better price discovery and market interest in the company’s shares. While these corporate actions do not change the company’s underlying fundamentals, they can make the stock more attractive for trading and may create conditions for broader investor participation if the company continues to deliver business growth.