A-1 Limited Announces Strategic Bonus Share Issue and Stock Split for Growth in Chemical Sector

During its board meeting on November 14, 2025, A-1 Limited announced several strategic decisions aimed at significant growth in the chemical sector. The company plans to issue a 1:3 bonus share and a 10x stock split. Additionally, A-1 Limited is expanding its stake in its electric vehicle (EV) subsidiary and exploring new sectors like EV production, clean transport infrastructure, sports equipment distribution, and pharmaceutical exports.

The company has proposed a bonus equity share issuance in a 1:3 ratio. This means shareholders will receive three bonus shares for every fully paid-up equity share of Rs. 10 they own as of the record date. This move is subject to shareholder approval through a postal vote. The company plans to issue 3,45,00,000 equity shares worth Rs. 10 each by capitalizing its free reserves and securities premium as of September 30, 2025.

A-1 Limited has also announced a stock split, pending shareholder approval via postal vote. The proposal involves subdividing one equity share with a face value of Rs. 10 into ten shares with a face value of Rs. 1 each. This change aims to enhance liquidity and attract retail investors while keeping the total paid-up capital unchanged.

Following the stock split, the authorized, subscribed, and paid-up share capital will increase from 4,60,00,000 equity shares of Rs. 10 each to 46,00,00,000 equity shares of Rs. 1 each. The company intends to complete this process within three months after receiving approval for the stock split.

The company's reserves include Rs. 13.70 crore in securities premium and Rs. 23.08 crore in free reserves based on unaudited financials for the quarter ending September 30, 2025. To execute the bonus issue, reserves totaling Rs. 34.50 crore are required. A-1 Ltd stated that the record date for the bonus shares will be announced later.

"AI Limited stock price is bullish but also overbought on the Daily charts with next resistance at 2073. Investors should be booking profits as a Daily close below support of 1754 could lead to a target of 1499 in the near term," commented A R Ramachandran, Independent SEBI registered Research Analyst, Tips2trades.

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