Synopsis: A construction microcap’s board has greenlit a 10-for-1 stock split and an authorised capital hike in one swift meeting
A construction microcap just cleared two landmark capital restructuring moves in a single board sitting – and both decisions now head to shareholders for the final word. A stock split and an authorised capital expansion, approved together at an April 28 board meeting, signal a clear intent to widen accessibility and shore up the company’s capital headroom as it eyes the road ahead.
With a market cap of Rs. 399 Crore, the shares of Deepak Builders and Engineers India Ltd. are trading at a price of Rs. 85.2 per share i.e. 1.61% up from its previous closing price of Rs. 83.9. It currently trades at P/E of 11.
What’s the News
The board of Deepak Builders & Engineers India Limited approved a 10-for-1 stock split at its April 28 board meeting, proposing to subdivide each existing equity share of face value Rs. 10 into ten shares of face value Re. 1 each. The move, subject to shareholder nod via postal ballot, is a classic liquidity-enhancing play – smaller face value typically makes shares more accessible to retail investors and can improve trading volumes by bringing the per-unit price within easier reach.
Alongside the split, the board also approved an increase in the company’s authorised share capital from Rs. 55 crore to Rs. 65 crore – a jump of Rs. 10 crore. Post-split, the restructured capital would be divided into 65 crore equity shares of Re. 1 each, up from the current 55 crore shares. To effect this change, the company will also amend the Capital Clause of its Memorandum of Association.
Both resolutions will now go to shareholders through a postal ballot process. The Postal Ballot Notice has been approved by the board and will be dispatched to members in due course. Only after shareholder approval will the split and capital increase take formal effect.
Financial highlights
Deepak Builders & Engineers India Ltd showed a mixed financial performance in the quarter ended December 2025. Sales rose significantly by 27.45%, reaching ₹166.38 crore compared to ₹130.55 crore in December 2024. However, the Net Profit plummeted by 68.20%, falling to ₹5.17 crore from ₹16.26 crore due to rising expenses. Consequently, the Operating Profit Margin (OPM) contracted sharply from 23.07% to 8.99%. While top-line growth remains robust, increasing costs have heavily pressured the company’s bottom-line profitability.
About Deepak Builders & Engineers India Limited
Deepak Builders & Engineers India Limited is an integrated EPC company engaged in construction and infrastructure development across India. It undertakes turnkey projects including institutional buildings, hospitals, industrial facilities, and transport infrastructure such as bridges and railway projects. The company offers end-to-end services covering civil works, MEP, HVAC, and firefighting systems. With a strong presence in government projects, it has built expertise in executing complex, large-scale developments. Headquartered in Ludhiana, the company continues to expand its footprint while focusing on timely delivery and quality execution across diverse infrastructure segments.
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