AVI Polymers' board approved the issuance of bonus equity shares in a 1:10 ratio on June 4, 2026, subject to shareholder approval. This means shareholders will receive one bonus equity share for every ten fully paid-up shares held as of the record date. The company plans to issue approximately 94.08 lakh bonus shares, equivalent to about 0.94 crore shares, according to livemint.com.
The decision was made during the board meeting held on Thursday and awaits shareholder consent before implementation. The bonus shares are expected to be credited or dispatched within two months from the date of board approval. This move aims to reward existing shareholders and potentially improve liquidity in the stock, as reported by livemint.com.
Bonus share issuances are common among companies seeking to enhance shareholder value without diluting ownership. AVI Polymers' 1:10 ratio is a sizable issuance, reflecting confidence in the company’s prospects. Such corporate actions often follow stock price adjustments or precede stock splits, which can attract retail investors and improve marketability, per livemint.com insights.
The issuance of 94.08 lakh bonus shares will expand AVI Polymers' equity base significantly once completed. The company’s next steps include obtaining shareholder approval and completing the share crediting process within two months of the board’s decision, as detailed by livemint.com.