The shares of Bharat Rasayan jumped on October 20 after the company announced that the its board is set to meet on October 24 (Friday) to consider the proposal to announce stock split and bonus issue of shares.
The stock closed 3.59 percent higher at Rs 10,186.70 per share on Monday. Earlier during the day, the stock had surged nearly 12 percent to hit an intraday high of Rs 10,990 per share.
In an exchange filing released on Friday, Bharat Rasayan said, "A meeting of the Board of Directors of Bharat Rasayan Limited is scheduled to be held on Friday, October 24, 2025, to consider interalia, the proposal of Sub-Division of equity shares and proposal for issuance of Bonus issue of Equity Shares of the Company."
What is a stock split?
A company announces stock split to increase the overall liquidity of the stock. While this increases the total number of shares, it does not change the market capitalization of the company. This makes it more affordable for other investors to add shares of the company to their portfolio, creating strong upside potential for the stock.
What is bonus issue?
While the issue of bonus shares increases the total number of shares issued and owned, it does not change the market capitalization of the company. This increases the overall liquidity of the stock, and makes it more affordable for other investors to add to their portfolio, creating strong upside potential for the stock.
Bonus issue essentially are free shares offered by a company from its reserves. Such issue is perceived to reflect on a firm's strong financials and growth potential.
Bharat Rasayan share price:
Bharat Rasayan shares have surged more than 5 percent in the past five days. The stock however dropped nearly 10 percent in the past one year, and increased only 14 percent in the past five years.
After hitting a 52-week high of Rs 12,300 per share in November last year, the stock dropped 28.5 percent to hit a 52-week low of Rs 8,798.5 per share in May this year. The stock has now recovered nearly 16 percent since then.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
