SBI Funds Management Limited Announces 3:1 Bonus Shares & Capital Increase at EGM 2025
SBI Funds Management Limited, a prominent joint venture between the State Bank of India (SBI) and Amundi, has recently announced a major corporate update that has grabbed investor attention. The company will hold its 24th Extra-Ordinary General Meeting (EGM) on Tuesday, December 9, 2025, at 4:30 PM IST, through video conferencing and other audio-visual means.
The EGM has been convened to discuss two key agenda items: an increase in the authorized share capital and the issuance of bonus shares to existing shareholders. These strategic moves reflect SBI Funds Management Limited’s ongoing efforts to strengthen its capital base and reward its shareholders, offering potential growth opportunities for investors.
Increase in Authorized Share Capital
The first agenda item at the EGM focuses on increasing the authorized share capital of SBI Funds Management Limited. The company plans to raise its authorized capital from ₹52.5 crore to ₹210 crore. This will be achieved by creating an additional 157,500,000,000 equity shares of ₹1 each. The change also involves amending Clause V in the company’s Memorandum of Association to reflect the new authorized capital structure.
This capital increase is a significant move for the company, as it provides greater flexibility for issuing new shares, raising funds for future expansion, and supporting business growth initiatives. Shareholders have been asked to approve this special resolution, which aligns with Section 13 and other provisions of the Companies Act, 2013.
Issuance of Bonus Shares
In addition to the capital increase, SBI Funds Management Limited will issue bonus shares in the ratio of 3:1. This means for every one existing equity share, shareholders will receive three fully paid-up bonus shares. The bonus shares will be allocated from the share premium account and free reserves, including general reserves and retained earnings.
This issuance demonstrates the company’s commitment to rewarding shareholders and enhancing investor confidence. The bonus shares will rank pari passu with existing equity shares as of the record date and will comply with the Companies Act, 2013, and other applicable regulations, including the Foreign Exchange Management Act (FEMA), 1999.
Investor Takeaways
For investors tracking SBI Funds Management Limited, the EGM represents a significant corporate milestone. The increase in authorized share capital enhances the company’s flexibility for future growth, while the 3:1 bonus share issuance is a lucrative reward for existing shareholders, reflecting its strong financial footing.
Investors are encouraged to review the official EGM notice dated November 14, 2025, for full details on resolutions and record dates.
Key Highlights of the 24th EGM
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Date & Time: Tuesday, 9th December 2025, at 4:30 PM IST
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Mode: Video Conferencing (VC) / Other Audio-Visual Means (OAVM)
Agenda
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Increase in Authorized Share Capital – ₹52.5 crore → ₹210 crore
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Issue of Bonus Shares – 3:1 ratio, fully paid-up
These updates are expected to positively influence investor sentiment and reflect the company’s commitment to transparency and shareholder value.
Conclusion
SBI Funds Management Limited continues to showcase strong governance and shareholder-friendly policies through its upcoming 24th EGM. The authorized capital increase and bonus share issuance highlight the company’s growth prospects and investor-focused strategy.
For deeper insights into how such corporate actions influence long-term investment strategy, explore perspectives from
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