AVI Polymers Limited has approved a 1:10 bonus issue and a 10:1 stock split to improve retail affordability and market liquidity. Simultaneously, the board authorized a major corporate diversification strategy into green tech, including industrial waste management systems and advanced material recycling technologies.
MUMBAI, India — In a major corporate restructuring move, the Board of Directors of AVI Polymers Limited has officially approved a 1:10 bonus share issuance alongside a subsequent 10:1 stock split. Announced following a board meeting held in Mumbai on June 4, 2026, these capital restructuring measures are specifically designed to lower share price barriers for retail investors and improve stock market trading liquidity. Concurrently, the company announced a major strategic pivot, broadening its historical business scope to enter high-growth sustainable green technology and material recycling sectors.
Restructuring Share Capital to Enhance Market Liquidity
The multi-stage capital modification program significantly changes the company’s equity architecture. First, the board approved increasing AVI Polymers' authorized share capital from Rs. 100 crore to Rs. 105 crore, dividing it into 10.5 crore equity shares with a face value of Rs. 10 each.
Following this expansion, the board authorized a bonus issue in a 1:10 ratio, meaning eligible equity shareholders will receive one new fully paid-up bonus equity share for every ten existing equity shares held on a record date to be announced later. This bonus allocation will utilize Rs. 9.408 crore from the company’s audited free reserves, which stood at a surplus of Rs. 21.52 crore as of March 31, 2026. The bonus shares are estimated to be credited or dispatched within two months of board approval.
Executing a 10:1 Stock Split for Small Retail Investors
Directly following the bonus adjustment, AVI Polymers will execute a complete sub-division and split of its equity shares. Under this approved plan, each equity share with a face value of Rs. 10 will be split into ten separate equity shares with a face value of Re. 1 each.
The corporate filing highlights that the primary rationale behind this stock split is to improve the liquidity of the company's shares in the stock market and make equity ownership significantly more affordable for small retail shareholders. The adjustment will expand the post-bonus issued, paid-up, and subscribed capital structure from 10.34 crore shares at Rs. 10 face value to 1.034 billion shares at Re. 1 face value. The full execution of the stock split is expected to conclude within five months from the date of receiving formal shareholder approval via a postal ballot.
Strategic Business Diversification into Green Tech
Beyond restructuring its equity, the board approved a strategic pivot into high-growth sustainable industries. Seeking to capitalize on global sustainability demand, AVI Polymers is entering three major eco-friendly operational sectors:
Industrial Waste Management Systems: Designing and deploying corporate-grade hazardous and non-hazardous waste handling mechanisms.
Advanced Material Recycling Technology: Scaling technical capacity to recycle industrial polymers and compounds back into circular supply loops.
Carbon Footprint Optimization & Sustainability Consulting: Offering advisory services to external corporations aiming to reduce emissions and fulfill carbon neutrality metrics.
Official Sources Section
The corporate disclosures, capital allocations, financial timelines, and strategic operational pivots described in this report are based directly on regulatory filings submitted by AVI Polymers Limited to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Executive Declarations
"The board has approved the issuance of Bonus Equity Shares in the ratio of 1:10 to the eligible equity shareholders," stated Chintan Yashwantbhai Patel, Managing Director of AVI Polymers Limited, in the official regulatory filing. "The sub-division of the face value of equity shares from Rs. 10 to Re. 1 is purposefully designed to improve market liquidity and broad-base small retail shareholders, while our strategic expansion into green tech outlines our long-term vision for sustainable corporate growth."
Why It Matters
The capital updates and industrial diversification have clear practical implications for multiple stakeholders:
For Small Retail Shareholders: The combination of the bonus issue and 10:1 stock split lowers the absolute per-share purchasing price, allowing smaller retail market participants to trade the equity with minimal capital.
For Institutional Investors: The strategic expansion into waste management, advanced recycling, and sustainability consulting transforms AVI Polymers into an environmental, social, and governance (ESG) focused enterprise, opening the doors to specialized green investment funds.
For the Broader Stock Market: The sudden expansion of circulating shares from roughly 9.4 crore to over 1.03 billion post-split units dramatically enhances trading volumes and reduces bid-ask spreads on the
BSE Limitedexchange floors.
Key Facts at a Glance
Approved Bonus Ratio: Shareholders will receive 1 new bonus equity share for every 10 fully paid shares held on the upcoming record date.
Stock Split Parameters: Face value splits from Rs. 10 down to Re. 1 per share, expanding total post-bonus shares to 1.034 billion units.
Capital Utilization: The company will draw Rs. 9.408 crore from its audited free reserves surplus of Rs. 21.52 crore to fund the bonus issue.
Strategic Pivot: The board approved a new core business expansion focused on industrial waste management and advanced material recycling.
Implementation Timeline: Bonus shares will credit within 2 months, while the stock split will finish within 5 months of shareholder approval.
Frequently Asked Questions
When will the bonus shares be credited to my demat account?
According to the company’s official filing, the bonus shares are estimated to be credited or dispatched within two months from the date of the board's approval (June 4, 2026).
Why is AVI Polymers splitting its shares after issuing a bonus?
The dual action drastically increases the number of outstanding shares while lowering the nominal trading price. This makes the stock highly accessible to retail investors and actively boosts market trading liquidity.
What new business areas is AVI Polymers entering?
The company is launching operations in industrial waste management systems, advanced material recycling technologies, and carbon footprint optimization consulting services.
Source: Official corporate action board meeting outcome submitted to BSE Limited by AVI Polymers Limited on June 4, 2026.
