Fevicol-maker might announce first bonus share issue in 15 years
What's the story
Pidilite Industries, the maker of Fevicol, is all set to hold a board meeting today. The main agenda of this meeting is to consider a proposal for the firm's first bonus share issue in 15 years. Along with this, the board will also discuss a special interim dividend for FY26. The decision on both matters will be announced after the meeting concludes.
Meeting agenda
Board to discuss unaudited financial results for Q1 FY26
The board meeting will also discuss the unaudited financial results for the quarter ending June 30, 2025. The company had earlier informed about these plans in an exchange filing. It noted that the bonus share issue is subject to shareholder approval if approved by the board, while the interim dividend is not typically subject to such approval.
Previous issuance
Last bonus share issue in March 2010
If approved, this would be the first bonus share issue by Pidilite Industries since its last 1:1 bonus stock issue in March 2010. The company has also announced that the trading window for securities will remain closed till August 8, as per SEBI regulations. Further details on the bonus ratio, record date or dividend quantum will be revealed after today's meeting outcome.
Market impact
What are bonus shares?
A bonus stock issue is when a company gives extra shares to its existing shareholders for free, in proportion to their current holdings. This strategy is used by companies as a way of rewarding shareholders without impacting their cash reserves. It also shows management's confidence in the company's future earnings. The overall value of an investment remains unchanged immediately after such an issue, but it increases number of shares held, improving liquidity and making stock more affordable for new investors.