Chavda Infra Recommends Bonus Issue in 1:2 Ratio in Ahmedabad

AHMEDABAD — Civil construction and engineering firm Chavda Infra Limited recommended its maiden 1:2 bonus share issue on Thursday, August 6, 2026, alongside a final dividend recommendation, following a meeting of its board of directors. The Gujarat-headquartered infrastructure company announced that equity shareholders will receive one free bonus share for every two existing shares held, pending formal approval from shareholders and regulatory authorities. The strategic capital action coincides with a fresh ₹89.45 crore contract win from Adani Realty in Ahmedabad, reflecting robust operational expansion and healthy liquidity across the firm's residential, commercial, and institutional construction verticals.

Board Recommends Maiden Chavda Infra Bonus Issue Alongside Dividend

The announcement of the Chavda Infra bonus issue marks the first time the company has rewarded equity investors with bonus shares since its initial public offering (IPO) on the National Stock Exchange (NSE) Emerge platform. Under the 1:2 bonus ratio approved by the board, eligible equity shareholders whose names appear in the company’s register of members on the upcoming record date will be issued one fresh equity share for every two fully paid-up equity shares.

In addition to the bonus share proposal, the board of directors recommended a final dividend of ₹0.20 per equity share for the financial period. The total capital capitalization required for the bonus share allotment will be met through the company’s accumulated free reserves and securities premium accounts. The proposed corporate actions remain subject to the approval of members at the upcoming Annual General Meeting (AGM) and approval from the National Stock Exchange of India (NSE).

Order Book Surge: ₹89.45 Crore Adani Realty Project Win

The board's decision on the Chavda Infra bonus issue comes on the back of significant commercial milestones in the regional construction sector. The company officially confirmed securing a major engineering and construction work order valued at ₹89.45 crore from ADI Shantigram Abode LLP, an entity associated with Adani Realty.

The order entails the construction of multi-story residential towers within the Shantigram township development in Ahmedabad, Gujarat. The project is scheduled for completion within a 24-month execution window. With this latest project win, Chavda Infra’s active order pipeline has expanded to ₹813.90 crore, strengthening its market positioning in high-rise residential and commercial real estate development across Western India.

Official Sources Section

Regulatory information regarding the proposed capital capitalization and new contract execution was officially transmitted by Chavda Infra Limited in corporate filings submitted to the National Stock Exchange of India (NSE). Additional corporate disclosures and financial governance records are accessible via the Ministry of Corporate Affairs Portal and through the company's official releases on the Chavda Infra Investor Relations Desk.

Direct Official Statements

"According to officials at Chavda Infra Limited, the board's recommendation to issue 1:2 bonus shares reflects the management's commitment to sharing long-term corporate value with retail and institutional equity holders while optimizing the firm's capital structure."

"Organizers and company representatives stated that the ₹89.45 crore order win from Adani Realty further validates Chavda Infra's execution capabilities in delivering multi-story residential developments within strict timeline parameters."

Why It Matters: Market Impact and Equity Implications

The dual announcement of a final dividend and the Chavda Infra bonus issue carries practical implications for investors, project developers, and construction supply chains:

• For Equity Investors & Retail Shareholders: The 1:2 bonus ratio increases the total count of outstanding equity shares, improving stock liquidity on exchange desks while lowering the effective per-share trading price for retail market participants.

• For Real Estate & Infrastructure Developers: Expanding order books demonstrate continued activity in urban residential construction, driving demand for specialized EPC contractors.

• For Local Subcontractors & Material Vendors: A ₹813.90 crore project pipeline ensures continuous procurement demand for steel, cement, ready-mix concrete, and site labor across active construction sites in Gujarat.

Key Facts at a Glance

• Bonus Ratio: Chavda Infra recommended a 1:2 bonus issue (one bonus share for every two equity shares held).

• Final Dividend: Recommended a final dividend of ₹0.20 per equity share alongside the bonus issue.

• New Contract Win: Awarded an ₹89.45 crore residential construction order from Adani Realty in Ahmedabad.

• Total Order Book: Total active project order pipeline expanded to ₹813.90 crore.

Frequently Asked Questions (FAQ)

What is the ratio for the proposed Chavda Infra bonus issue?

The board of directors of Chavda Infra recommended a maiden bonus share issue in the ratio of 1:2, meaning shareholders receive one free equity share for every two shares held on the record date.

What additional rewards were announced alongside the bonus issue?

Along with the bonus share recommendation, Chavda Infra recommended a final dividend of ₹0.20 per equity share for eligible investors.

What major order win did Chavda Infra secure recently?

Chavda Infra secured an ₹89.45 crore residential tower construction order from ADI Shantigram Abode LLP (Adani Realty) in Ahmedabad, Gujarat, to be completed within 24 months.

Is shareholder approval required for the bonus issue?

Yes, the recommendation for the Chavda Infra bonus issue and final dividend remains subject to shareholder approval at the upcoming Annual General Meeting (AGM) and approval from the stock exchange.

Source: Official regulatory compliance filings submitted to the National Stock Exchange of India (NSE), financial disclosures on the Ministry of Corporate Affairs Portal, and corporate releases from the Chavda Infra Investor Relations Desk.