Shares of Fineotex Chemical Ltd hit a 20 per cent upper circuit on Friday, October 31, 2205, even as benchmark indices traded in the red. This surge comes after a stock split, where the stock fell sharply to Rs 25.75 today from yesterday's closing price of Rs 250. Some brokerage trading apps showed the unadjusted price for a while. The drop in share price following the stock split led to a surge in trading volume, which resulted in the stock hitting a 20 per cent upper circuit of Rs 29.80. The market cap of the company stood at Rs 3,414.34 crore. The 52-week high of the stock is Rs 38.46, and the 52-week low is Rs 19.21.
Fineotex Chemical Stock Split
The company recently announced in its filing that it would split the stock in a 1:2 ratio. This means that one equity share with a face value of Rs 2 will be divided into two equity shares with a face value of Re 1 each.
Fineotex Chemical Bonus Share
The company will issue these bonus shares after the stock split, when the face value of one equity share will reach Re 1.
The company stated in its filing that it would issue bonus shares in a 4:1 ratio. This means that for every one existing equity share with a face value of Re 1, the company will issue four equity shares with a face value of Re 1 each as a free bonus.
According to the information available on BSE, the company last issued a bonus in the ratio of 1:1 approximately 10 years ago, i.e., in 2015.
Upon post-share subdivision, the company's paid-up and subscribed capital will increase from 11,45,75,090 shares to 22,91,50,180 shares, with a corresponding adjustment to the face value.
Furthermore, the authorised share capital will be revised from 14,00,00,000 shares of Rs 2 each to 120,00,00,000 shares of Rs 1 each. Subject to regulatory approvals, the company anticipates completing this corporate action by November 25, 2025.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
