SC Agrotech Shares Hit Upper Circuit After Announcing Stock Split and Bonus Issue

Shares of SC Agrotech Limited jumped 5% during Friday's intraday trading session to hit the upper circuit at ₹62.38 per share on the BSE. This move brings the company's market capitalisation to ₹474.06 crore and marks a fresh 52-week high for the stock.

Corporate Actions

The company announced a bonus issue in the ratio of 4:5, meaning shareholders will receive 4 fully paid-up bonus shares for every 5 shares they own. The board also proposed a stock split of 1:10, breaking down each existing share with a face value of ₹10 into 10 shares with a face value of Re 1 each. According to the BSE filing, this subdivision aims to make individual shares easier to buy and bring in more investors. Both actions still need approval from shareholders, and the board has not yet set a record date for them. The board also discussed a dividend proposal and plans to look at it again during the next quarterly review.

Market Performance

Driven by these updates, the stock has rallied sharply with gains of nearly 62% over the last two weeks, hitting the upper circuit in six of the last seven trading sessions. Over wider timeframes, the stock gave a 27.57% return in one week, 71.89% in one month, 144% in six months, and 266% over the past year.

Context

Stock splits and bonus issues are common corporate moves used by companies to increase the number of shares in the market and lower the price of a single share. While these actions do not change the underlying value of the company itself, they often make stocks more affordable for smaller retail investors. Companies typically see heavy buying activity when such rewards are announced alongside strong multi-month price rallies.