Fineotex Chemicals Shares Surge 10% Ahead of Board Meeting on First Bonus Issue and Stock Split in 10 Years

Shares of Fineotex Chemicals surged sharply by as much as 16% on Thursday, September 25, following the company's announcement that its board of directors will soon convene to discuss a potential bonus issue and stock split. This unexpected jump brought relief to investors, especially considering that the stock had been underperforming throughout the year.

Finotex Chemicals' First Bonus Issue and Stock Split in 10 Years: Check Date

According to an exchange filing released after market hours on Wednesday, Fineotex Chemicals has scheduled a board meeting for Saturday, September 27. During this meeting, the board will deliberate on three important proposals: a bonus issue of shares, a stock split and a dividend payout for shareholders. This marks the first time in a decade that the company is contemplating both a bonus issue and a stock split simultaneously.

1:1 Bonus Issue in 10 Years

Looking back, the last time Fineotex Chemicals rewarded its shareholders in such a manner was in 2015. At that time, the company announced a 1:1 bonus issue, which meant that investors received one additional share for every share they already held. Along with this, Fineotex Chemicals carried out a stock split, where one equity share with a face value of Rs 10 was divided into five shares with a face value of Rs 2 each.

Fineotex Chemicals Board Approves Stock Split

Stock splits are generally undertaken by companies to increase the liquidity of their shares and make them more affordable for a wider range of investors. When a stock split occurs, the total number of shares in circulation increases, while the price per share decreases proportionally. This makes it easier for smaller investors to buy and sell shares, often leading to heightened trading activity and a potential rise in demand for the stock.

Fineotex Chemicals Share Price Today

Following the announcement, Fineotex Chemicals' shares rose sharply. As of 12:52 pm on September 25, Fineotex Chemicals' share price surged to Rs 256.03, up by Rs 23.88 or 10.29% for the day. The stock opened at Rs 250.00 and has traded within a range of Rs 245.00 to Rs 270.80 so far. Over the past 52 weeks, the share price has fluctuated between a low of Rs 207.00 and a high of Rs 438.95.