Avi Polymers Plans Mega 10:1 Bonus And 1:10 Split To Turbocharge Liquidity

The company has proposed these actions subject to board approval and subsequent regulatory and shareholder clearances. If cleared, the move would significantly increase the number of outstanding shares and reduce the face value per share, without altering the company’s overall market capitalization.

Board Agenda And Corporate Action Framework

Avi Polymers’ board is scheduled to evaluate issuing bonus equity shares up to 10 shares for every 1 share held, effectively multiplying the share count. In parallel, it will review a stock split of equity shares up to 1:10, which would subdivide each existing share into 10 smaller-denomination shares, making the stock more accessible to retail investors.

Rationale For Bonus And Split

Bonus shares typically reward existing shareholders by capitalizing reserves, while stock splits lower the per share trading price and can increase liquidity. Together, these corporate actions can enhance marketability, tighten spreads and potentially draw fresh participation from smaller investors and traders tracking micro-cap and small-cap names.

Key Highlights

• Board to consider bonus equity issue up to 10:1 ratio
• Simultaneous proposal for stock split of equity shares up to 1:10
• Corporate actions, if approved, to enhance liquidity and affordability
• No change to overall market capitalization, only share count and face value

Sources: BSE/NSE corporate filings, Angel One, Trendlyne, Finology