Paushak Limited , a Gujarat-based company, has announced a series of significant corporate actions aimed at enhancing shareholder value and increasing market participation. The company's Board of Directors has approved a bonus share issue, stock split, and reclassification of authorized share capital, subject to shareholder approval through a postal ballot.

Bonus Share Issue

Paushak has approved a bonus share issue in the ratio of 3:1, meaning shareholders will receive three additional shares for every one share they currently hold. This move will significantly increase the number of outstanding shares, potentially improving liquidity in the stock.

Stock Split

In addition to the bonus issue, the company has decided to split its equity shares. The face value of each share will be reduced from ₹10 to ₹5, effectively doubling the number of shares in circulation. This stock split is expected to make the shares more accessible to a broader range of investors.

Capital Restructuring

Paushak is also reclassifying its authorized share capital. The new structure will consist of 4,00,00,000 equity shares of ₹5 each, totaling ₹20 crore. This change involves converting the existing preference shares into equity shares, simplifying the company's capital structure.

Impact on Shareholders

After the implementation of these corporate actions, for every one equity share of ₹10 face value currently held, shareholders will ultimately possess eight equity shares of ₹5 face value each.

Financial Implications

The bonus issue will require ₹9.25 crore from the company's reserves. Paushak has ₹359.64 crore in free reserves available for capitalization, including a Capital Redemption Reserve of ₹3.14 crore.

Rationale and Expectations

The company stated that these corporate actions are proposed to enable higher participation from public shareholders. By increasing the number of shares in circulation and reducing the face value, Paushak aims to enhance liquidity and potentially broaden its investor base.

These strategic moves by Paushak reflect a proactive approach to capital management and shareholder value creation. Investors and market watchers will be keenly observing how these changes impact the company's stock performance and market perception in the coming months.

Paushak Limited has announced a crucial board meeting scheduled for August 11, 2025, to deliberate on potential corporate actions that could significantly impact its share structure. The company's board will consider proposals for a stock split and a bonus issue, subject to shareholder approval.

Key Points of the Announcement

Stock Split Consideration

The board will discuss the potential split of the company's existing equity shares, which currently have a face value of Rs. 10 each. This move, if approved, would be implemented in accordance with the applicable provisions of the Companies Act, 2013, and SEBI Listing Regulations, 2015.

Bonus Issue Proposal

Additionally, the board will consider a proposal for issuing bonus shares. This action, if given the green light, would be carried out in compliance with the relevant provisions of the Companies Act, 2013, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Trading Window Closure

In light of this significant announcement, Paushak has implemented a closure of the trading window for dealing in the company's securities. This closure is effective immediately and will remain in place until 48 hours after the declaration of the outcome of the board meeting.

The trading window closure is in accordance with the company's Code of Conduct for Regulating, Monitoring and Reporting of Trading by Designated Persons and their Immediate Relatives, which is framed under SEBI (Prohibition of Insider Trading) Regulations, 2015.

Investors and market participants are advised to keep a close watch on the outcome of this board meeting, as the decisions made could have substantial implications for Paushak's share structure and valuation. Any approved corporate actions would still be subject to shareholder approval before implementation.

Paushak Limited, headquartered in Vadodara, Gujarat, operates in the chemical industry.