Bonus Share: Amid AI Summit, small tech company announces stock split with bonus shares

News Topical, Digital Desk : The company's stock opened slightly lower on February 19, 2026, but gained nearly 1% in morning trading. The stock has recently declined in the past month, while long-term returns have been impressive. Meanwhile, the company has issued a major corporate update to the exchanges, including the announcement of a stock split and bonus shares. This has investors keenly watching the company's next steps.

Silver Touch Technologies shares opened at ₹1,284, compared to a closing price of ₹1,286.60 on February 19, 2026. The stock gained nearly 1% in early trading. Although the stock has lost nearly 20% over the past month, its long-term performance has been strong.

The stock has gained nearly 100% in one year, while in three years it has seen a gain of nearly 300%. This clearly shows that despite the recent decline, long-term investors have received good returns. 

What does the company do? Silver Touch Technologies is an IT services and software development company that focuses on digital transformation and enterprise technology solutions. The company provides services such as AI/ML, RPA, cloud solutions (AWS and Azure), ERP implementation, and enterprise software development. The company is also active in segments such as web and mobile app development, big data analytics, e-governance, SEO, and system integration. Its clients range from SMEs to large enterprises. The company has completed over 700 projects and has over 1,000 employees. 

Founded in Ahmedabad in 1992, the company is CMMi5 and ISO certified. Its focus is on SaaS, cloud, and AI-based solutions, allowing it to benefit from the growing demand for Industry 4.0 and digital adoption.

In FY25, the company's revenue was approximately ₹331 crore and PAT was approximately ₹31.7 crore. The company's market cap is approximately ₹1,610 crore, and promoters hold a 74.61% stake, demonstrating strong promoter confidence.

What's the company's major announcement?
The company has informed the exchange that a record date has been set for March 6, 2026. Based on this date, two major corporate actions will be implemented:
a share with a face value of ₹10 will be divided into 5 shares, with a face value of ₹2. Bonus shares will then be issued in a 1:1 ratio,
meaning investors will receive 1 bonus share for every 1 share. Such a move is typically taken to increase stock liquidity and encourage participation from small investors.

What does this mean for investors?

After a stock split, the share price may appear lower, making trading easier. Meanwhile, bonus shares increase the number of shares held by investors. While there is no immediate change in the company's overall value, market sentiment often becomes positive.

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