Kretto Syscon Ltd to Consider Bonus Issue and 100% Dividend on 15 July Board meeting

Company recently entered into a JV Agreement with M/s B-Devasya Designs & Buildcon Pvt Ltd for the development of affordable residential-cum-commercial real estate project

Highlights:

Ahmedabad, 20 June 2025: Meeting of the Board of Directors of Kretto Syscon Limited (BSE - BSE: 531328) is scheduled to be held on Tuesday, July 15, 2025 to consider and recommend Bonus Issue and declaration of dividend of up to 100% (i.e Rs. 1 per equity share of face value Rs. 1 per share) for the Financial Year 2024-25 subject to approval by the shareholders at the ensuing Extra-Ordinary General Meeting.

Company also considering Issue of Bonus Shares to the equity shareholders of the Company, in a ratio to be decided by the Board as on a Record Date to be determined later.

Either of the corporate actions including Dividend and Bonus issue are, subject to availability of distributable reserves, requisite statutory and shareholder approvals.

In accordance with the Company’s Code of Conduct for Prevention of Insider Trading under SEBI (Prohibition of Insider Trading) Regulations, 2015, the Trading Window for dealing in securities of the Company shall remain closed from June 20, 2025, and shall reopen 48 hours after the conclusion of the Board Meeting and disclosure of the outcome to the stock exchange.

Company has recently entered into a Joint Venture Agreement with M/s B-Devasya Designs & Buildcon Private Limited for the development of a landmark affordable residential-cum-commercial real estate project located along Manipur Road, Ghuma, a fast-developing zone in West Ahmedabad, Gujarat. This strategic alliance reflects company’s commitment to unlock value through smart capital deployment, premium project development, and forward-looking partnerships.

The joint venture plans to build 1 & 2 BHK affordable homes aimed at salaried employees, nuclear families, and PMAY eligible buyers. Ground floor reserved for retail outlets – planned for clinics, groceries, salons, etc., to provide community functionality and generate rental upside. Cost for the project is estimated at Rs. 250 million and revenue is estimated around Rs. 480 million. Company (Kretto Syscon Ltd) is expected to invest around Rs. 50 million in the 43,000 sq ft (super built-up) project with G + 7 (8 floor) and it is estimated to be completed in five years.

Ghuma is emerging real estate pocket and poised to redefine luxury living and integrated commercial spaces. With its strategic positioning, advanced infrastructure, and rising demand, Ghuma is fast becoming one of the city’s most sought-after destinations for discerning homebuyers and investors. The region is expected to see significant capital appreciation by 2026, making it an ideal launchpad for Kretto’s marquee project. This partnership underscores company’s strategic intent to prudently deploy capital in real estate backed assets with high potential for appreciation, and to collaborate with experienced development partners to ensure execution excellence.

The Company believes that this venture will enhance shareholder value through strategic asset creation and profitable joint development, with returns linked to market-linked monetisation of premium units in one of Ahmedabad’s most promising corridors.

For the financial year ended March 2025, company has reported multi-fold growth in total income and profit. Net profit for the FY25 was reported at Rs. 4.13 crore, 15 fold rise as compared to net profit of Rs. 25.43 lakh in the corresponding period last year. Total Income also increased to Rs. 11.70 crore in FY25 as compared to total income of Rs. 70.2 lakh in the same period last year, over 15 fold growth.
 

(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody. Investors must take advice from their financial advisors before investing in any stocks.)