Ashish Kacholia-backed Fineotex Chemical approves stock split, bonus issue

Firm approves bonus issue.

Smallcap Fineotex Chemical received shareholders’ approval for a stock split and a bonus share issue at its extraordinary general meeting, the company said in a regulatory filing.

The company said 99.99 percent of votes cast were in favour of both resolutions — sub-division of shares and the bonus issue.

In September, the board had cleared a proposal to split the face value of its shares from Rs 2 to Re 1 each in a 1:1 ratio. Following the split, each existing equity share of Rs 2 will be divided into two equity shares of Re 1 each, it said.

Shareholders also backed the issue of bonus shares in the ratio of 4:1. Four fully paid-up equity shares of Re 1 each will be issued for every one share of Re 1 each held after the stock split.

This will be the company’s second bonus issue; the first was announced in 2015 in a 1:1 ratio, as per BSE data.

The company will announce the record date later to determine eligible shareholders for the stock split and bonus issue.

Ace investor Ashish Kacholia is among the company’s shareholders, according to Trendlyne data.

Shares of Fineotex Chemical closed 0.85 percent lower at Rs 253.95 on the NSE on Monday.

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