Pondy Oxides And Chemicals Makes Shares More Affordable With Strategic Stock Split Approval

Nikunj Parikh - Mumbai Bureau May 26, 2026 1,300 Views

Chennai-based Pondy Oxides and Chemicals Limited has approved a share sub-division plan that will split two existing equity shares having face value of Rs 5 each into five equity shares with face value of Rs 2 each. The move, which was approved by the board of directors during their meeting on May 26, 2026, is designed to improve market liquidity and increase the number of retail investors participating in the market.

The board of directors of Pondy Oxides and Chemicals Limited, a leading chemical company listed on NSE and BSE, have approved a substantial stock split plan that will make the company's shares more affordable for small investors. The company has also announced significant leadership changes and governance improvements, showcasing its holistic strategy for shareholder value creation.

The Stock Split Mechanics is a straightforward guide that helps you grasp the fundamentals of the stock split.

The approved sub-division will transform the current shareholding structure where two equity shares with face value of Rs 5 per share will be split into five equity shares with face value of Rs 2 per share. This will result in a post-split share count of 250 shares with Rs 2 face value for each shareholder who owns 100 shares with Rs 5 face value. The split ratio is intended to lower the price of each share, making them more accessible to retail investors.

The authorized share capital will remain unchanged at Rs 20.15 crore, but will be restructured from 4.03 crore shares of Rs 5 each to 10.08 crore shares of Rs 2 each. Likewise, the paid-up and subscribed capital of Rs 15.26 crore will be shifted from 3.05 crore shares to 7.63 crore shares.

Strategic Rationale Behind The Move

The main aim of the board resolution is to make equity shares more liquid in the market and promote small investors' participation by making the shares more affordable. A stock split is usually done to lower the trading price of a share, without impacting the market capitalization or the company's fundamentals, and may lead to higher trading volumes and better price discovery.

The approval timeline and execution process.The approval timeline and execution process.

The stock split must be approved by shareholders by postal ballot and the notice must be sent to shareholders in accordance with the rules. The anticipated completion date is around two months after the shareholder approval by postal ballot. The record date for the stock split will be announced after obtaining shareholder consent.

Governance And Leadership Enhancements

In conjunction with the stock split approval, the board has also enhanced its governance structure by appointing Mr. Hemant Jawahar Lal as Additional Director (Non-Executive Independent Director) of the company for a term of five years with the approval of the shareholders by postal ballot. Further, the current Managing Director Ashish Bansal has been promoted to the Chairman and Managing Director with the same terms and conditions.

Memorandum Of Association Amendment

The company will make changes to Clause V of its Memorandum of Association (MoA) to accommodate the stock split, which relates to the capital clause. The revised clause will be in line with the new authorized share capital structure of Rs 20.15 crore comprising 10.08 crore equity shares of Rs 2 each, which will be subject to approval by the shareholders.

Key Action Highlights

The company has approved that two equity shares of Rs 5 will be split into five equity shares of Rs 2 each.
Authorized capital to be changed from 4.03 crore shares to 10.08 crore shares with the same value of Rs 20.15 crore
The paid-up capital is to be realigned from 3.05 crore shares to 7.63 crore shares with the same value of Rs 15.26 crore.
Stock split aimed at enhancing liquidity and encouraging small investor participation
Shareholder approval via postal ballot necessary to implement.
The expected completion date is two months after the shareholders' approval.
Hemant Jawahar Lal appointed as Non-Executive Independent Director for five years
Ashish Bansal has been promoted to Chairman and Managing Director.
The amendment to Clause V of Memorandum of Association was approved.
Board meeting held on May 26, 2026 from 3:00 PM to 5:00 PM
Record date for stock split to be announced post shareholder approval