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1:2 Stock split, 1:1 Bonus share: Agrochemical company Bharat Rasayan Limited has announced two major corporate actions for its shareholders. The company’s Board of Directors has approved both a 1:2 stock split and a 1:1 bonus share issue, subject to shareholder approval.

In a filing to the stock exchanges, Bharat Rasayan said its board has approved the sub-division of equity shares. Each existing share with a face value of Rs 10 will be split into two shares of Rs 5 each.

A stock split is a corporate action where a company divides its existing shares into multiple shares to lower the price per share, increase the number of outstanding shares, and boost liquidity. For existing shareholders, the total value of their investment remains the same, as the increase in the number of shares is offset by a proportional decrease in the share price.

Following the split, the company’s total 41.55 lakh equity shares will double to 83.10 lakh equity shares, while the authorised share capital will remain unchanged at Rs 20 crore, now divided into 4 crore shares of Rs 5 each.

In addition to the stock split, the company’s board has also recommended issuing bonus shares in a 1:1 ratio — meaning shareholders will receive one additional share for every existing share held.

The bonus shares will be issued from the company’s free reserves and capital redemption reserves, with an estimated Rs 4.16 crore to be utilized for this purpose.

The company has not yet declared the record date for determining shareholder eligibility for the stock split and bonus issue. It said these dates will be announced in due course.

On Wednesday, shares of Bharat Rasayan Limited settled at Rs 10,879.50, down Rs 188.50 or 1.70 per cent on the NSE

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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