SC Agrotech Sets 1:10 Split and 4:5 Bonus, Shares Hit ₹62.38

SC Agrotech’s board has approved a 1:10 stock split and a 4:5 bonus issue, and the news lifted the agricultural-products stock to a fresh 52-week high. Shares closed at an upper-circuit price of ₹62.38 on the BSE on Friday, November 13, giving the company a market capitalisation of ₹474.06 crore, Mint reported. BusinessLine put the gain at 5% with shares trading at ₹62.

Under the split, each existing fully paid-up equity share of ₹10 face value would become 10 shares of Re 1 each. The board also recommended issuing four fully paid-up bonus shares for every five shares held. Both actions still need shareholder and other approvals.

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Key facts

• The split subdivides each ₹10 share into 10 shares of Re 1 each; the bonus ratio is 4:5.
• An extraordinary general meeting is set for December 11 to seek shareholder approval, BusinessLine reported.
• The board is also considering raising authorised equity share capital by ₹61 crore, per BusinessLine.
• Record dates for both corporate actions have not been announced.
• No dividend was declared; the board said it would consider one at its next quarterly review after weighing capital needs and investment priorities.

Seven sessions, six upper circuits

The stock has rallied nearly 62% over the past two weeks and hit the upper circuit in six of the last seven trading sessions, Mint reported. It gained 27.57% in a week, 62.7% in two weeks, 71.89% over a month, 144% in six months and 266% over a year.

BusinessLine tied the corporate actions to a sharp improvement in September-quarter performance, with net profit rising nearly 48 times year-on-year. It illustrated the mechanics of the two actions: an investor holding 400 shares would hold 4,000 after the split and receive another 3,200 through the bonus, for a total of 7,200 shares.

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The company also launched AgriBridge, a digital agriculture platform linking farmers, suppliers and institutional buyers. BusinessLine reported a hypothetical annual gross merchandise value of ₹1,000 crore, with platform revenue of ₹52 crore at a 5% monetisation rate — figures that depend on adoption and transaction volumes rather than committed results.

Why it matters

Splits and bonus issues change the share count and per-share price, not an investor’s economic stake. For SC Agrotech, the proposal comes after a steep run-up that has left the stock circuit-limited, meaning buyers on several sessions could not execute orders at all. The board’s split filing framed the goal as improving individual-share accessibility and enabling wider investor participation. The board’s decision to defer the dividend to a later review, meanwhile, means holders get no cash distribution from this round of corporate actions.

What to watch

The December 11 extraordinary general meeting is the next hurdle, where shareholders vote on the split and bonus. After that, the board must fix and announce record dates, which determine who qualifies. Any dividend decision would come at the next quarterly board review.

This article is not financial advice, and small-cap equity markets are volatile and can move sharply in either direction.

Written by

StockPil Editorial

The StockPil Editorial desk covers stock markets, business, finance, forex and crypto. Our AI-assisted newsroom builds each article from published, linked sources, checks it for accuracy before it goes live, and our editors review published articles and correct anything that needs it.

Sources: Mint, BusinessLine