Pidilite Industries Shares Alert! Board Approves 1:1 Bonus Shares; Pidilite Industries Target Price?

Based on the outcome of a postal ballot that ended on September 11, 2025, the Pidilite Industries board of directors has authorized the issuing of bonus equity shares. At a board meeting on August 6, 2025, Pidilite Industries said that the board of directors proposed increasing the company's authorized share capital from Rs. 99 crores to Rs. 125 crores and recommending 1:1 bonus shares for qualifying shareholders.

"The Board at its meeting held on 6th August, 2025, have considered and approved payment of special interim dividend of Rs. 10/- per equity share of Re.1/- each for the Financial Year 2025-2026 and recommended to the shareholders for their approval issue of bonus shares in the ratio of 1:1. He further informed about the appointment of Mr. Sandeep Kataria as an Additional Director (Non-Executive and Independent), subject to the approval of members," said Pidilite Industries in a statement.

On September 12, Pidilite Industries Limited said that the postal ballot procedure had been completed successfully, with all three resolutions approved by shareholders. With an overwhelming vote, the special resolution designating Shri Sandeep Kataria as an Independent Director was approved, bolstering trust in the company's management. The Memorandum of Association was amended in accordance with the approval of shareholders, who also approved the increase in the authorized share capital to Rs 125 crore. The issuing of bonus equity shares was approved by the third resolution, which was an ordinary resolution.

Through a bonus issue in the ratio of 1:1 (one fully paid-up equity share for every one fully paid-up equity share owned as on the record date), the company has announced the issuing of 50,86,69,085 equity shares of face value Rs 1 each, totaling Rs 50,86,69,085.
As of June 30, 2025, the Securities Premium Account will be used for the payout of the bonus. The authorized share capital would grow from Rs 99,00,00,000, which includes 99 crore equity shares, to Rs 1,25,00,00,000, which includes 125 crore equity shares, as a result of this issue. The company's equity base would essentially double as a result of the issued, subscribed, and paid-up capital increasing from Rs 50,86,69,085 comprising 50,86,69,085 equity shares to Rs 1,01,73,38,170 containing 1,01,73,38,170 equity shares.

About Rs 50.87 crore is needed by the corporation to effectuate the proposed bonus issue; this amount will be modified depending on how many eligible employees exercise their stock options up until the record date. According to the most recent audited balance sheet, which was dated March 31, 2025, the company has enough capitalization reserves, including Rs 8,096.98 crore in retained earnings, Rs 102.45 crore in securities premium, Rs 0.50 crore in capital redemption reserve, and Rs 1,335.38 crore in general reserve. It is anticipated that eligible stockholders would get their bonus shares within two months of the Board's approval, which is on or before October 3, 2025.

For the purpose of bonus shares, the record date is yet to be decided by Pidilite Industries.

Pidilite Industries Target Price

"Pidilite is showing steady upward momentum after recent consolidation. The stock has support placed around ₹3020, which is crucial to maintain its positive outlook. If it holds above ₹3050, it can move towards ₹3150 and ₹3200 levels in the near term. Momentum indicators suggest underlying strength, and dips can attract buying interest. Traders should maintain a stop-loss below ₹3020 while holding long positions. Overall, the bias stays bullish as long as the stock sustains above its support zone," commented technical analyst Riyank Arora of Mehta Equities Ltd.

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