Small-cap company Maharashtra Seamless on Monday announced a 1:1 bonus issue, meaning that as of the record date, investors held one share of share capital for every share. The company said the record date would be filed with the exchange in due course.

Public companies issue bonus shares from their free reserves and surplus. From this capital, bonus shares are issued and distributed to accredited investors. Shares of Maharashtra Seamless were down more than 1% at Rs 861 per share at around 9:55 am.

Maharashtra Seamless is a long-term stock with a three-year return of 139% and a gain of 66% over the past year. Founded in 1988, the company is a manufacturer of seamless pipes with a market capitalisation of Rs 5,737 crore.