Fineotex Chemicals Share Price Surges 16% on Bonus Issue and Stock Split Plans

Fineotex Chemicals share price jumped as much as 16% on Thursday, September 25, after the company announced that its board will soon meet to consider a bonus issue of shares and a stock split. The sudden rise came as a relief to investors, especially since the stock has been underperforming this year.

Fineotex Chemicals Schedules Board Meeting on September 27

In an exchange filing after market hours on Wednesday, Fineotex Chemicals said that its board of directors will meet on Saturday, September 27. During the meeting, the board will discuss three key proposals:

1. Bonus issue of shares
2. Stock split
3. Dividend payout for shareholders

This will be the first time in 10 years that Fineotex Chemicals is considering both a bonus issue and a stock split.

Fineotex Chemicals Bonus Issue and Stock Split History

The last time Fineotex Chemicals rewarded its shareholders in this way was in 2015. At that time, the company announced a 1:1 bonus issue, meaning investors received one additional share for every share they owned.

Alongside this, the company split its shares, dividing one equity share of ₹10 face value into five shares of ₹2 each.

Why Companies Go for Stock Splits?

A stock split is usually carried out to increase liquidity and make shares more affordable for investors. When a stock is split, the number of shares in the market increases while the price per share decreases.

This makes it easier for small investors to buy or sell shares, leading to more trading activity and potentially boosting demand.

Fineotex Chemicals Share Price Performance

After the announcement, shares of Fineotex Chemicals rose sharply to ₹269.25, up 16% in a single session.

However, despite today’s surge, the stock has fallen 22% so far in 2025, making this the first strong rally in months.

Read more:Best Railway Stocks for October 2025: Titagarh, Jupiter Wagons, BEML Lead the Sector.

Conclusion

The upcoming board meeting on September 27 is an important event for Fineotex Chemicals and its investors. If the company goes ahead with the bonus issue and stock split, it could reward existing shareholders and attract new investors by making its shares more affordable and liquid. All eyes are now on the meeting outcome to see how the company plans to create value for its stakeholders.

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