Bharat Rasayan Announces Stock Split and 1:1 Bonus Issue
On October 24, 2025, Bharat Rasayan Limited’s board of directors approved a stock split and a 1:1 bonus issue, aiming to enhance share liquidity and broaden the investor base.
Details of the Stock Split
The company plans to subdivide its existing 41,55,268 equity shares of ₹10 each into 83,10,536 equity shares of ₹5 each. This move is intended to make the shares more affordable to small investors and increase market liquidity. The authorized share capital will remain at ₹20 crore, now comprising 4 crore equity shares of ₹5 each. The issued, paid-up, and subscribed capital will stay at ₹4.16 crore, represented by 83.10 lakh shares of ₹5 each. The company aims to complete the stock split within two months of receiving shareholder approval and necessary regulatory clearances.
Bonus Share Issue
In addition to the stock split, the board has recommended a 1:1 bonus issue, granting one additional ₹5 share for every existing ₹5 share held by shareholders, subject to approval. A Bonus Issue Committee will oversee the process. Following the bonus issue, 83.10 lakh new shares will be allotted, increasing the paid-up share capital to ₹8.31 crore, divided into 1.66 crore shares of ₹5 each. The bonus shares will be issued from the company’s Free Reserves and Capital Redemption Reserve, which stood at ₹1,10,246.64 lakh as of March 31, 2025, with ₹4.16 crore to be capitalized. The company expects to credit or dispatch the bonus shares by December 23, 2025.
Market Reaction
Following the announcement, Bharat Rasayan’s share price experienced a decline. On October 27, 2025, the stock fell 6.36% to ₹11,120 during trading sessions. Despite this short-term dip, the stock has shown strong performance over the longer term, gaining 11% in the past month and over 15% in the past six months. Over the past 25 years, the stock has delivered multibagger returns, soaring over 44,400%.
Company Performance
Bharat Rasayan, a Delhi-based agrochemical firm specializing in pesticides, reported a net profit of ₹140.92 crore and a total income of ₹1,199.02 crore for the fiscal year 2024-25. The company’s decision to implement a stock split and bonus issue reflects its commitment to enhancing shareholder value and making its shares more accessible to a broader range of investors.
