Fineotex Chemical Declares 40% Dividend, 4:1 Bonus Shares & 1:2 Stock Split

Leading Indian specialty chemical company Fineotex Chemical Limited (FCL) has announced three corporate actions for its shareholders at once. The Board of Directors, at a meeting on September 27, 2025, among other things, discussed and authorized bonus shares, stock split and dividend.

Fineotex Chemical Dividend

The Board of Fineotex Chemical declared an interim dividend of 40% i.e; Rs. 0.80/- per equity share of face value of Rs. 2/- each, aggregating to Rs. 9.17 Crores approx.

"Further, pursuant to Regulation 42 of the Listing regulations, the Record date for the purpose of determining the members eligible to receipt of an interim dividend has been fixed as Friday, October 03, 2025 and the dividend will be paid on or before October 25, 2025," said Fineotex Chemical in a stock exchange filing.

Fineotex Chemical Bonus Shares

The Board also approved "Issue of bonus equity shares in the ratio of 4:1 i.e., 4 (Four) bonus equity shares of Rs. 1/- (Rupee One) each for every 1 (One) equity share of Rs. 1/- (Rupee One) each fully paid-up, held by the shareholders of the company as on the record date, subject to the approval of shareholders in Extraordinary General Meeting," said Fineotex Chemical in a stock exchange filing.

The company has announced a bonus issue in the ratio of 4:1, which means that for every fully paid-up equity share of Rs 1 held as of the record date, shareholders will receive four bonus shares of Rs 1 each.

In total, approximately 91,66,00,720 bonus equity shares of Rs 1 each will be issued, with the exact number depending on the fully paid-up shares on record.

The Securities Premium Account, which has a balance of Rs 91,66,00,720 as of March 31, 2025, would be used to issue these bonus shares. Following the bonus issue, the authorized capital stays at 120,00,00,000 equity shares of Rs 1 each, while the paid-up share capital of the firm will increase from 22,91,50,180 equity shares of Rs 1 each to 114,57,50,900 equity shares of Rs 1 each.

Fineotex Chemical Stock Split

The Board have also recommended "Sub-division of 1 (One) equity share of face value of Rs. 2/- each fully paid-up into 2 (Two) equity shares of face value of Rs. 1/- each fully paid-up, held by the shareholders of the company as on the record date, subject to the approval of shareholders in Extraordinary General Meeting," confirmed Fineotex Chemical in a regulatory filing.

This corporate action aims to improve share liquidity and affordability, making the company's equity shares more accessible and encouraging wider retail investor participation, as per Fineotex Chemical.

Post sub-division, the authorised share capital will increase from 14,00,00,000 equity shares of face value Rs 2 each to 120,00,00,000 equity shares of face value Rs 1 each. Similarly, the paid-up and subscribed share capital will rise from 11,45,75,090 equity shares of face value Rs 2 each to 22,91,50,180 equity shares of face value Rs 1 each.
The company has clarified that it has only one class of equity shares, and no shareholders will lose their holdings in the process. The corporate action is expected to be completed on or before November 25, 2025, subject to necessary approvals.

Upcoming EGM of Fineotex Chemical

Through VC/OAVM, the firm has announced that its Extraordinary General Meeting (EGM) will take place on Saturday, October 25, 2025 at 3 PM (IST) in order to get the necessary approval from its members for the aforementioned agenda.

"The Company has fixed October 17, 2025 as the "Cut-off-Date" for the purpose of determining the eligibility of the members entitled to vote by remote e-voting. Those shareholders holding shares, as on the close of business hours on October 17, 2025 will be entitled to avail the facility of remote e-voting as well as voting at the EGM," said Fineotex Chemical in a regulatory statement.