1:2 Stock Split Announced: Chemical Stock Goes Affordable; Should You Buy Before The Record Date?

In an effort to increase liquidity and expand investor participation, Anupam Rasayan and TIDCO's joint venture, TANFAC Industries Ltd., a well-known chemical company in India, announced a 1:2 stock split. Subdivision of the company's equity shares, subject to shareholder and statutory and regulatory approvals, such that each equity share with a face value of Rs. 10 will be divided into two equity shares with a face value of Rs. 5. After getting the aforementioned permission from the company's shareholders, the record date for the purpose of subdividing equity shares will be determined and announced in due order.

TANFAC Industries Stock Split Details

The company has proposed a sub-division (stock split) of its equity shares, reducing the face value from Rs. 10 per share to Rs. 5 per share. Before the sub-division, the company's authorised equity share capital stood at Rs. 25 crore, divided into 2.5 crore equity shares of Rs. 10 each.

"To enhance the liquidity of the Company's equity shares and to encourage the participation of small investors by making equity shares of the Company more affordable to invest in the equity shares of the Company," said TANFAC Industries in a stock exchange filing.

Following the subdivision, the number of authorized equity shares increases to 5 crore shares of Rs. 5 each, reflecting the revised face value, while the authorized equity share capital stays at Rs. 25 crore. The preference share capital, which consists of 10 lakh preference shares at Rs. 100 each, is still the same in terms of both structure and value at Rs. 10 crore.

Before the split, the company had 99.75 lakh equity shares of Rs. 10 apiece, totalling Rs. 9.975 crore in issued, subscribed, and fully paid-up equity capital. This will result in 1.995 crore equity shares at a price of Rs. 5 apiece following the subdivision, with the paid-up equity capital remaining at Rs. 9.975 crore.

Subject to receiving all required clearances from statutory and regulatory authorities, the subdivision procedure is anticipated to be finished within three months of the date of shareholder approval.

TANFAC Industries News

Tanfac Industries Limited has reported that the Board of Directors approved the construction of a new downstream fluorinated chemicals manufacturing facility with an installed capacity of 20,000 tonnes annually at the company's current manufacturing location in Cuddalore during its meeting on January 9, 2026. The project is anticipated to be completed by November 2026 and would require a total expenditure of about Rs 495 crore.

"The investment is intended to support planned expansion into the downstream fluorinated chemicals segment. The proposed facility will be developed at the existing manufacturing location at Cuddalore, enabling operational integration with current infrastructure. The project cost is proposed to be funded through a combination of equity and debt, with commissioning expected by November 2026," said Mr Afzal Malkani, Managing Director.

The proposed facility will be set up within the existing SIPCOT Industrial Estate complex at Cuddalore and will cater to both domestic and international markets.

The project forms part of the company's long term growth strategy to expand its downstream product portfolio. The project cost is proposed to be funded through a combination of equity and debt.

In addition to approving the downstream expansion, the Board approved the raising of funds up to Rs 500 crore through equity shares by way of qualified institutional placement or other permitted modes, subject to shareholder and regulatory approvals.

TANFAC Industries Target Price

"Tanfac Industries stock price is bearish with strong resistance at 4740 on the Daily charts. A Daily close below support of 4276 could lead to a target of 3915 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

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