Bharat Rasayan Stuns Investors: Mega Stock Split & 1:1 Bonus Issue Announced!

Bharat Rasayan Announces Major Corporate Actions: Stock Split and Bonus Issue

Bharat Rasayan Ltd. has sent waves of excitement through the market by announcing two significant corporate actions: a stock split and a bonus issue. These moves are expected to boost investor confidence and potentially increase the company's stock liquidity.

Key Corporate Actions Detailed

• The company has set Friday, December 12, 2025, as the record date for these corporate actions.
• A stock split is planned in a 2:1 ratio. This means each existing equity share with a face value of Rs 10 will be subdivided into two new equity shares, each with a face value of Rs 5.
• Following the stock split, Bharat Rasayan will issue bonus shares in a 1:1 ratio. Shareholders will receive one new bonus equity share of Rs 5 for every one existing fully paid-up equity share of Rs 5 they hold as of the record date.
• The total issue of bonus shares is expected to be up to 83,10,536 equity shares.

Company Background and Performance

• Established in 1989, Bharat Rasayan Ltd. is a prominent manufacturer in the agro-chemical sector, specializing in Technical Grade Pesticides and Intermediates.
• The company manufactures key insecticides like Lambda Cyhalothrin Technical, Metribuzine Technical, Thiamethoxam, and Fipronil, along with intermediates such as Metaphenoxy Benzaldehyde.
• Recently introduced products like Fluxametamide and Diuron Technical are expanding its portfolio.
• The company boasts a market capitalization of over Rs 4,400 crore.
• Promoters hold a substantial stake of 74.99 per cent in the company.

Recent Stock Performance

• On Thursday, shares of Bharat Rasayan Ltd. saw a surge of 1 per cent, trading at Rs 10,538.25 per share.
• The stock is currently trading approximately 20 per cent higher than its 52-week low of Rs 8,807.45 per share.
• The 52-week high for the stock is Rs 12,121 per share.
• Notably, there was a significant 'Spurt in Volume' observed, with trading volume more than quadrupling on the BSE.

Impact

• Stock splits and bonus issues are generally viewed positively by investors as they can make shares more accessible and signal a company's confidence in its future growth.
• The split can lower the per-share price, potentially attracting a broader base of retail investors.
• The bonus issue increases the number of shares held by existing shareholders without any additional cost, thereby enhancing their holdings.
• Impact Rating: 7/10

Difficult Terms Explained

• Stock Split / Subdivision of Shares: A corporate action where a company divides its existing shares into multiple shares, thereby increasing the number of shares outstanding but reducing the price per share. For example, a 2:1 split means one share becomes two.
• Bonus Issue: An offer by a company to issue additional shares to its existing shareholders for free, usually in proportion to their current shareholding.
• Record Date: A specific date set by a company to determine which shareholders are eligible to receive dividends, stock splits, bonus shares, or other corporate actions.
• Technical Grade Pesticides: Highly pure forms of pesticides used in the manufacturing of pesticide formulations.
• Intermediates: Chemical compounds that are part of a larger synthesis process, used to create final products.
• Market Capitalization: The total market value of a company's outstanding shares of stock.
• Promoters: The founders or initial owners of a company, typically holding a significant portion of its shares and often involved in management.
• Spurt in Volume: A significant and rapid increase in the number of shares traded during a specific period.