Bharat Rasayan share price: Bonus, stock split today; here's what you should know

Bharat Rasayan Ltd shares are ready for major corporate actions, with the stock turning ex-bonus and ex-stock split on Friday, December 12. Shares of Bharat Rasayan would turn ex-bonus in the 1:1 ratio, meaning investor would get one free share for every one share they hold. This is in addition to the scrip getting split from the existing face value of Rs 10 into to Rs 5 each. 

The sub-division would mean 41,55,268 existing shares of face value Rs 10 each would split into 83,10,536 shares of face value Rs 5 each. Post split, Bharat Rasayan will also issue 83,10,536 fresh shares of face value Rs 5 each, out of free reserves and capital redemption reserve of the company.  

The deemed date of allotment of bonus shares would be Monday, December 15, and requisite documents for credit of bonus shares in the depository system would be submitted to the Depositories latest by 12 PM on Monday, December 15. The bonus shares would be available for trading on the next working date of the allotment i.e. by Tuesday, December 16.     

Today is also the record date for the corporate actions.

Bharat Rasayan Ltd is engaged in manufacturing technical grade pesticides, pesticides formulations and intermediates. The company manufactures technical grade pesticides like fenevalrate technical, D ethyl ester technical and isoproturon technical. All equipments used in manufacturing, testing and packaging of the materials are regularly maintained and calibrated both at its in-house and by third party laboratories. 

The stock split leads to price adjustment on the counter, as the conversion effectively reduced the per-share price while expanding the share count. The corporate action would improve liquidity on the counter, widen shareholder base and make shares affordable to small investors, Bharat Rasayan said.   

The stock is down 2.3 per cent year-to-date and 11 per cent over the past year. It closed at Rs 9,895 apiece on Thursday. Crop prices are under some pressure in India (especially corn), while excess rainfall has continued into the Rabi season.