Bharat Rasayan Share Price Falls 6% After Board Approves Stock Split and Bonus Issue

The Indian stock market opened the week with a buzz around Bharat Rasayan, as its shares slipped sharply following a major corporate announcement. The company’s board approved a stock split and a 1:1 bonus share issue, triggering profit-booking among investors after a strong run in recent months.

Market Reaction

In Monday’s session, Bharat Rasayan share price declined by 6.36%, settling at ₹11,120. The fall came soon after the company’s board unveiled plans to split its shares and reward shareholders with bonus equity. Despite the dip, the stock has been one of the standout performers in recent years.

Over the short term, Bharat Rasayan has maintained solid momentum:

• The stock gained nearly 11% in the last one month.
• It rose over 15% in the past six months.
• Over a longer horizon, it delivered multibagger returns of more than 44,400% in 25 years, making it one of the most remarkable growth stories in the Indian market.

Bharat Rasayan Stock Split Details

The board approved a stock split aimed at improving share liquidity and making the stock more affordable for smaller investors.

Here’s how the structure changes post-split:

• Existing 41.55 lakh equity shares of ₹10 each will be split into 83.10 lakh fully paid-up shares of ₹5 each.
• The authorised share capital remains unchanged at ₹20 crore, now comprising 4 crore equity shares of ₹5 each.
• The issued, paid-up, and subscribed capital stays at ₹4.16 crore, represented by 83.10 lakh shares of ₹5 each.

The company intends to complete the stock split within two months of receiving shareholder approval and required regulatory clearances.

Bharat Rasayan Bonus Share Issue Details

Along with the stock split, the board has also declared a 1:1 bonus issue, meaning every shareholder will receive one additional share for each existing share held.

Key highlights of the bonus issue include:

• Post-bonus, 83.10 lakh new shares will be allotted, taking the total paid-up share capital to ₹8.31 crore, divided into 1.66 crore shares of ₹5 each.
• The bonus shares will be issued from the company’s Free Reserves and Capital Redemption Reserve, which stood at ₹1,10,246.64 lakh as of March 31, 2025.
• Out of this, ₹4.16 crore will be capitalised for the bonus issuance.
• The company expects to credit or dispatch the bonus shares by December 23, 2025, once all approvals are in place.

A Long-Term Performer Faces Short-Term Pressure

While the announcement led to a sharp decline in Bharat Rasayan share price today, the company’s long-term performance remains a strong highlight. The move to split shares and issue bonuses indicates management’s focus on enhancing liquidity and broadening shareholder participation.

For long-term investors, such actions often signal confidence in the company’s fundamentals and its continued commitment to shareholder value.

Summary

• Bharat Rasayan share price today fell 6.36% to ₹11,120 after the board approved a stock split and 1:1 bonus share issue.
• The company plans to split 41.55 lakh shares of ₹10 each into 83.10 lakh shares of ₹5 each and issue one bonus share for every existing one.
• The move aims to improve liquidity, widen investor reach, and reward shareholders, with the bonus share distribution expected by December 23, 2025.
• Despite today’s dip, Bharat Rasayan remains a long-term outperformer, having delivered exceptional returns over the years.