Explained: Fineotex Chemical stock split, bonus shares today; sharp price action likely
Fineotex Chemical shares: The corporate actions are aimed at improving share liquidity and affordability, making the company’s equity shares more accessible and encouraging wider retail investor participation.
- Oct 31, 2025,
- Updated Oct 31, 2025 7:57 AM IST
Fineotex Chemical Ltd will turn ex-date for bonus shares and stock split today. The stock would split from face value of Rs 2 each into shares with face value of Re 1 each. In addition to this, stock would also turn ex-date for bonus in the 4:1 ratio. This means if an existing investor already own one share of Fineotex Chemical, he will get four additional new shares: holding of shares would now be five shares instead of one share. Th two corporate actions would results in a sharp price action today. The stock split would turn one stock into two shares. The 4:1 ratio would mean that the two shares (after split) would result in eight new additional shares will total holding rising to 10 shares for every one share held.
The corporate actions are aimed at improving share liquidity and affordability, making the company’s equity shares more accessible and encouraging wider retail investor participation.
While both bonus issues and stock splits may appear similar, their purpose is different. A bonus issue rewards shareholders with free additional shares, funded out of accumulated earnings, while keeping the face value unchanged. A stock split, on the other hand, breaks existing shares into smaller units to boost liquidity, which reduces the face value. For instance, in a 1:2 stock split, each share is divided into two, with the dividend entitlement shrinking proportionally. In a bonus issue, however, the dividend entitlement remains unaffected. In our case, Fineotex Chemical's free reserves stood at Rs 415.72 crore and Securities Premium Account at Rs 189.48 crore as per the audited financial statements for the year ended March 31, 2025. The bonus shares are likely o be credited within 2 months from date of approval of the board, as statutorily required, subject to necessary approvals.
In the case of stock split, Fineotex Chemical intends to complete the corporate action on or before November 25, 2025, subject to necessary approvals.
The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward.
Fineotex Chemical Ltd will turn ex-date for bonus shares and stock split today. The stock would split from face value of Rs 2 each into shares with face value of Re 1 each. In addition to this, stock would also turn ex-date for bonus in the 4:1 ratio. This means if an existing investor already own one share of Fineotex Chemical, he will get four additional new shares: holding of shares would now be five shares instead of one share. Th two corporate actions would results in a sharp price action today. The stock split would turn one stock into two shares. The 4:1 ratio would mean that the two shares (after split) would result in eight new additional shares will total holding rising to 10 shares for every one share held.
The corporate actions are aimed at improving share liquidity and affordability, making the company’s equity shares more accessible and encouraging wider retail investor participation.
While both bonus issues and stock splits may appear similar, their purpose is different. A bonus issue rewards shareholders with free additional shares, funded out of accumulated earnings, while keeping the face value unchanged. A stock split, on the other hand, breaks existing shares into smaller units to boost liquidity, which reduces the face value. For instance, in a 1:2 stock split, each share is divided into two, with the dividend entitlement shrinking proportionally. In a bonus issue, however, the dividend entitlement remains unaffected. In our case, Fineotex Chemical's free reserves stood at Rs 415.72 crore and Securities Premium Account at Rs 189.48 crore as per the audited financial statements for the year ended March 31, 2025. The bonus shares are likely o be credited within 2 months from date of approval of the board, as statutorily required, subject to necessary approvals.
In the case of stock split, Fineotex Chemical intends to complete the corporate action on or before November 25, 2025, subject to necessary approvals.
The impact of a bonus issue is straightforward: it increases the number of shares in circulation, which trims down the company’s free reserves and lowers earnings per share (EPS). As a result, the stock price adjusts downward.