R M Drip and Sprinklers Systems Ltd, a micro-cap company in the capital goods sector, has declared that a meeting of the Board of Directors was held on 28th February 2026, where the issue of bonus equity shares was confirmed along with the record date. Following the announcement, the share price of R M Drip & Sprinklers Systems Ltd (RMDRIP) closed on the NSE at Rs 63.48 today, 2 March 2026.
With a 10.00% drop from its previous closing of Rs 70.53, the stock had a notable loss. The intraday high and low were both at the same level, and it opened at Rs 63.48 and became stuck at this lower circuit limit for the whole trading session. This decline is the company’s fourth straight losing session, with a total value loss of around 48.15% over this period of time.
RM Drip and Sprinklers Systems Bonus Shares
The Board of Directors “Approved the issuance of bonus equity shares in the ratio of 5:7, i.e., 5 (Five) new fully paid-up Equity Shares of Rs.1/- (Rupee One only) each for every 7 (Seven) existing fully paid-up Equity Shares of Rs.1/- (Rupee One only) each, held by the Members of the Company as on the Record Date (mentioned below), subject to approval of the Members through Postal Ballot and receipt of requisite statutory and regulatory approvals, as applicable,” said the company in a regulatory statement.
The record date for figuring out the members who are eligible to receive the aforementioned bonus equity shares is April 7, 2026.
RM Drip and Sprinklers Systems Bonus Issue Details
According to the company’s declaration, a total of 17,84,28,571 equity shares, each worth Re. 1, will be issued, for a total of Rs. 17,84,28,571. Bonus shares will be issued from the share premium account or free reserves made from accumulated profits. According to the announced 5:7 bonus issue ratio, shareholders will receive 5 new fully paid-up equity shares of Re. 1 for every 7 equity shares they already own.
The company’s authorized share capital, which has been divided into 31,50,00,000 equity shares of Re. 1 each, was Rs. 31.50 crore prior to the bonus issue. Prior to the bonus issue, the total issued, subscribed, and paid-up share capital was Rs. 24.98 crore, which included 24,98,00,000 equity shares of Re. 1 each.
The company’s capital structure will significantly expand when the bonus is issued. With 50,00,00,000 equity shares of Re. 1 apiece, the authorized share capital will rise to Rs. 50 crore. Meanwhile, 42,82,28,571 equity shares of Re. 1 each will make up the issued, subscribed, and paid-up share capital, which will increase to Rs. 42,82,28,571.
An amount of Rs. 17,84,28,571 will be capitalized from retained earnings/free reserves for the implementation of the bonus share issuance. The firm recorded retained earnings (free reserves) of Rs. 54,95,25,141, which are available for capitalization, according to the audited financial records for the year that ended on March 31, 2025.
The company anticipates that the bonus shares will be credited or dispatched within two months after the Board of Directors’ approval date; the tentative timeline is April 27, 2026, at the latest.
RM Drip and Sprinklers Systems Target Price
“RM Drip and Sprinklers stock price is bearish and oversold with next support at 41 on the Daily charts. Investors should buy only if Daily close is above resistance of 76 could lead to a target of 97 in the near term,” commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.
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