10:1 Bonus and 1:10 Stock Split: Chemical Stock Hits 5% Upper Circuit After Corporate Action Announcement

Synopsis: The share of this company surged after announcing a 1:10 stock split and a 10:1 bonus issue, triggering strong buying interest and pushing the chemical stock to its 5 percent upper circuit.

The share of this company, which specialises in trading chemicals, including dyes intermediates, detergent chemicals, and water treatment chemicals, came into focus after the announcement of Bonus and split today.

With a market capitalization of Rs 143 crore, AVI Polymers Ltd’s shares on Wednesday made a day high of Rs 15.21 per share, hitting 5 percent upper circuit from its previous day’s close price of Rs 14.49 per share. The share of this company gave a return of 139 percent over the last year.

Corporate Action

AVI Polymers Limited has informed the exchanges that its Board of Directors will meet on June 4, 2026, to consider key value-accretive proposals, including a stock split, bonus issue, and strategic diversification into green technology and sustainability-focused businesses aimed at enhancing long-term shareholder value and business growth visibility.

The company will consider a stock split in the ratio of 1:10, where one equity share will be subdivided into ten shares. This move is intended to improve liquidity in the stock, make it more affordable for retail investors, and broaden the overall shareholder base in the market.

The Board will also evaluate a bonus issue proposal of 10:1, meaning shareholders may receive up to ten bonus shares for every one share held. This corporate action aims to reward existing investors, optimise the capital structure, and reflect the company’s strong underlying financial and operational performance.

For example, if an investor holds 1,000 shares, a 1:10 stock split will convert each share into 10 shares, taking total holdings to 10,000 shares. On top of this, under a 10:1 bonus issue, the same investor holding 10,000 shares would receive 1,00,000 additional bonus shares, increasing total holdings to 110K shares.

In addition, AVI Polymers will deliberate on diversification into green technology segments such as industrial waste management systems, advanced material recycling technologies, and sustainability consulting. This strategic shift is aimed at aligning with global ESG trends while unlocking new high-growth, high-margin business opportunities.

About the Company

Avi Polymers Limited, established in 1993, is engaged in manufacturing and trading polymer compounds and speciality chemicals. Over time, it has expanded into polymer materials, chemical intermediates, and water treatment solutions, helping it serve multiple industries and maintain a stable presence across diverse business segments.

The company has evolved into a broader solutions provider by adding trading activities and focusing on end-to-end offerings. In recent years, it has also shifted towards innovation and technology-led opportunities through its subsidiary, aiming to build new growth avenues and remain relevant in changing market conditions.

Financial Highlights: Revenue from operations grew to Rs 150.28 crore in Q4 FY26 from Rs 0.00 crore in Q4 FY25, indicating full category creation. Profit before tax jumped 1,288 percent to Rs 13.78 crore from Rs 0.99 crore, while net profit surged 1,278 percent to Rs 10.24 crore from Rs 0.74 crore.

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