Penny Stock Under Rs 100: Agrochemical Company Board Approves Proposal for 10-for-1 Stock Split, 1:1 Bonus Issue and Amendment to Authorized Share Capital

SIKKO INDUSTRIES LIMITED announced key recommendations from its Board of Directors meeting held on Saturday, October 18, 2025,. The proposals aim to restructure the company’s capital and require approval from shareholders through an Extra-Ordinary General Meeting (EOGM).

The Board recommended a sub-division (stock split) of equity shares, where each existing share of Rs 10 will be split into 10 shares of Re 1 each. The 10:1 split aims to improve liquidity and encourage participation from small investors. The sub-division applies only to equity shares. Post-split, the company’s authorised capital will increase from 2.50 crore shares to 25 crore shares, and paid-up capital will rise from 2.18 crore shares to 21.84 crore shares, each of Re 1 face value. The expected timeline for completion is approximately three months from shareholder approval, subject to statutory requirements.

Following the stock split, the Board proposed a 1:1 bonus issue. Shareholders will receive one bonus share for each share held post-split. This would result in 21.84 crore new equity shares being issued from the share premium account and/or free reserves. As of March 31, 2025, the company has a securities premium of Rs 4,435.20 lakh and free reserves of Rs 1,519.10 lakh available for capitalisation. The bonus shares are expected to be credited or dispatched within two months of Board approval.

The combined effect of the stock split and bonus issue, subject to EOGM approval, will increase the company’s authorised capital to Rs 45 crore, subscribed capital to 43.68 crore shares, and paid-up capital to 43.68 crore shares, all with a face value of Re 1 per share.

The Board also recommended amending the Capital Clause (Clause V) of the Memorandum of Association (MOA) to reflect the increase in authorised share capital from Rs 25 crore to Rs 45 crore, pending shareholder approval.

To approve these proposals, the company will hold an EOGM on Thursday, November 13, 2025.

Incorporated in 2000, Sikko Industries Ltd is engaged in manufacturing, trading, and exporting a wide range of products, including bio-agrochemicals, pesticides, fertilisers, seeds, sprayers, packaging, machinery, and FMCG items. The company operates a fertiliser and pesticide unit that produces specialised formulations, including organic pesticides and organic fertilisers, offering an exclusive range of agrochemical solutions.

The stock price has given 46 per cent returns in the last month.

Disclaimer: The article is for informational purposes only and not investment advice.