Fineotex Chemicals has announced that its board of directors will meet on September 27, 2025, to consider key proposals including a bonus issue of shares, a stock split, and a dividend payout for shareholders.
Board Meeting Details
The board’s upcoming meeting comes at a time when the stock has been underperforming this year, providing relief to investors. This marks the first time in 10 years that the company is considering both a bonus issue and a stock split.
Historical Context
The last such shareholder reward was in 2015, when Fineotex Chemicals announced a 1:1 bonus issue, giving investors one additional share for every share held. Alongside this, the company carried out a stock split, dividing each ₹10 share into five shares of ₹2 each.
Purpose of Stock Splits
Stock splits are typically implemented to increase liquidity and make shares more accessible for retail investors. By increasing the number of shares while reducing the price per share, companies make it easier for investors to buy or sell, which can lead to increased trading activity and potentially higher demand.
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