Fineotex Chemical Limited (BSE: 533333, NSE: FCL) announced the outcome of its Board of Directors meeting held on September 27, 2025. The board approved multiple shareholder-friendly measures, including an interim dividend, stock split, and a significant bonus issue, aimed at rewarding investors and enhancing liquidity.
Key Highlights from the Board Meeting
- Interim Dividend
- The Board declared an interim dividend of 40%, i.e., ₹0.80 per equity share of face value ₹2 each, aggregating to approximately ₹9.17 crore.
- The record date for dividend eligibility is October 3, 2025, and the payout will be completed on or before October 25, 2025.
- Increase in Authorised Share Capital
- Authorised capital will be raised from ₹28 crore to ₹120 crore, with necessary amendments to the company’s Memorandum of Association, subject to shareholder approval.
- Stock Split (Sub-Division of Shares)
- Each ₹2 fully paid-up equity share will be sub-divided into two ₹1 fully paid-up shares.
- This move is expected to boost liquidity and affordability, encouraging wider retail participation.
- Bonus Issue in 4:1 Ratio
- Shareholders will receive 4 bonus shares of ₹1 each for every 1 share held.
- The issue will result in the creation of 91.66 crore new equity shares, capitalized from the Securities Premium Account.
- Post-bonus, the paid-up capital will rise from 22.91 crore shares to 114.57 crore shares.
- Extraordinary General Meeting (EGM)
- The EGM is scheduled for October 25, 2025, via VC/OAVM, to seek shareholder approval for the above matters.
- October 17, 2025 has been fixed as the cut-off date for remote e-voting eligibility.
Rationale Behind Corporate Actions
- Stock Split: To make shares more affordable and increase trading volume.
- Bonus Issue: To reward long-term shareholders and improve market participation.
- Capital Expansion: To support the company’s growth plans and future fund-raising requirements.
Dividend, Split & Bonus – Record Dates
- Dividend Record Date: October 3, 2025
- EGM Cut-off Date: October 17, 2025
- Split & Bonus Record Date: To be announced separately.
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