Summary:
SC Agrotech announced a 4:5 bonus issue and 1:10 stock split, subject to shareholder approval. Shares hit the 5% upper circuit at ₹62.38 on November 13, 2026, following the corporate action announcement and strong stock performance.
SC Agrotech Ltd (BSE: 526081) has announced a 4:5 bonus issue and a 1:10 stock split, giving shareholders the prospect of receiving additional equity shares. The company's board approved the proposals on Friday, November 13, 2026, alongside an increase in authorised share capital.
The stock also continued its strong upward movement, hitting the 5% upper circuit at ₹62.38 during Friday's trading session. Both corporate actions remain subject to shareholder approval.
What Did SC Agrotech Announce?
The company has proposed splitting each existing equity share with a face value of ₹10 into 10 equity shares with a face value of ₹1 each.
Following the subdivision, shareholders will receive four bonus shares for every five shares held on the applicable record date.
The board also approved increasing the company's authorised equity share capital from ₹76.50 crore to ₹137.50 crore, an increase of ₹61 crore. This provides additional capacity for issuing equity shares.
The proposed bonus shares will be issued by capitalising eligible reserves or securities premium, rather than collecting fresh funds from shareholders.
How Many Shares Will Investors Receive?
The combined corporate actions will increase the number of shares held by eligible investors by 18 times, assuming both proposals are implemented in the announced sequence.
For example, an investor currently holding 100 shares would see the following changes:
| Corporate action | Number of shares |
| Existing holding | 100 |
| After 1:10 stock split | 1,000 |
| Bonus shares received (4:5) | 800 |
| Final holding | 1,800 |
The company currently has 7,59,95,000 paid-up equity shares. Following the split and proposed bonus issue, the total number of outstanding shares would increase to 1,36,79,10,000.
However, the increase in share quantity does not automatically increase an investor's portfolio value. Share prices adjust to reflect corporate actions, while the investor's proportionate ownership remains unchanged.
Why Is SC Agrotech Share Price Surging?
SC Agrotech shares touched ₹62.38 on November 13, gaining 5% against the previous closing price of ₹59.41.
The stock reached its upper circuit limit and also touched a fresh 52-week high. Its 52-week low stood at ₹14.82, highlighting the substantial rise over the past year.
The announcement of the bonus issue and stock split comes amid this strong price movement. Such corporate actions can attract attention because the adjusted share price becomes lower, potentially making individual shares more accessible.
However, the corporate actions do not directly improve profitability, cash generation or business valuation.
Dividend Update and Record Date
The board also considered a potential dividend but decided to defer the proposal until its next quarterly review.
No dividend has been declared or recommended at the November 13 meeting.
The company has scheduled an extraordinary general meeting (EGM) for December 11, 2026, to seek shareholder approval for the proposed changes.
Record dates for the stock split and bonus issue have not yet been announced. The company will communicate these separately after completing the necessary approvals.
Investors will need to track the record dates and subsequent exchange announcements to determine their eligibility.
The proposed actions could increase the number of tradable shares and improve accessibility. Their longer-term market impact, however, will depend on the company's operating performance, financial position and trading liquidity.
