SC Agrotech shares surge as company plans stock split and bonus issue

Shares of small-cap firm SC Agrotech have hit a 52-week high after a strong market rally, reaching ₹ 62.38 per share following a 5% gain on Friday, November 13.

Share Actions

The company has proposed a 1:10 stock split alongside a 4:5 bonus issue. The stock split will subdivide each existing equity share with a face value of ₹ 10 into 10 shares with a face value of Re 1 each. Following this, the board has recommended a bonus issue of four fully paid-up shares for every five shares held. Together, these corporate actions will turn every single existing share into a total of 18 shares for eligible investors.

Returns And Record Date

The stock has delivered impressive returns recently, gaining nearly 62% in two weeks, about 72% in a month, 60% year-to-date, 144% over the past six months, and 266% over a full year. The board of directors has not yet announced the official record date to determine which shareholders will qualify for the split and bonus shares.

Context

Stock splits and bonus issues are common methods used by companies to increase liquidity and make shares more affordable for retail buyers. These actions expand the total number of shares in circulation while adjusting the individual share price proportionally.