Triple Bonanza: 4:1 bonus share; 1:2 stock split & 40% dividend announced: Asish Kacholia’s portfolio multibagger stock jumps over 5% today!

On Tuesday, shares of specialty chemical company jumped 5.1 per cent to Rs 262.95 per share from their previous closing of Rs 250.25 per share. The stock’s 52-week high is Rs 438.60 per share and its 52-week low is Rs 192.05 per share. An ace investor, Ashish Kacholia, holds 31,35,568 shares or a 2.74 per cent stake in the company as of June 2025.

The company's Board of Directors recently convened to approve several significant corporate actions, including the declaration of an Interim dividend. The board approved an interim dividend of 40 per cent, which translates to Re 0.80 (Eighty Paise) per equity share based on a face value of Rs 2 each, amounting to approximately Rs 9.17 Crores in total payout. In compliance with listing regulations, the Record Date for determining dividend eligibility has been fixed as Friday, October 03, 2025, and the actual dividend is slated for payment on or before October 25, 2025.

In addition to the dividend, the Board has proposed a set of major structural changes, all of which are subject to approval by shareholders at an upcoming Extraordinary General Meeting (EGM). These include a significant increase in the company's Authorised Share Capital from Rs 28 crore to Rs 120 crore, necessitating a corresponding amendment to the Memorandum of Association. The Board also approved a stock split (sub-division) of 1 equity share of Rs 2 face value into 2 equity shares of Re 1 face value each. Following this sub-division, the company plans an Issue of bonus Equity Shares in the ratio of 4:1, meaning 4 bonus shares of Re 1 face value will be issued for every 1 existing share of Re 1 face value. These bonus shares are expected to be credited or dispatched to eligible shareholders within 2 months from the date of the Board's approval, pending all necessary statutory and shareholder approvals.

The stock name is Fineotex Chemical Ltd (FCL)

About the Company

Fineotex Chemical Limited is a leading Indian multinational producer of specialty performance chemicals, offering sustainable, technology-driven solutions for industries such as textile and garment processing, home care, water treatment and oil & gas. With advanced manufacturing facilities in Ambernath (India) and Selangor (Malaysia) and a new plant planned for Ambernath, Fineotex is committed to innovation and sustainability. The company serves clients in approximately 70 countries through an extensive network of over 103 dealers and distributors in India, supported by an NABL-accredited R&D laboratory. Fineotex consistently delivers innovative, reliable and eco-friendly solutions to meet global market demands.

Fineotex Chemical's Quarterly Results show a strong financial performance, with consolidated total income rising 14.8 per cent quarter-on-quarter to Rs 146.22 crore. This was driven by solid performance in its textile chemicals and oil & gas businesses. The company's operational efficiency is highlighted by an 18.3 per cent increase in EBITDA to Rs 25.20 crore and a 24.3 per cent jump in net profit to Rs 25.03 crore. Additionally, Fineotex successfully completed a Rs 60 crore expansion project, commissioning a new manufacturing facility that adds 15,000 MTPA to its capacity to meet growing demand.

For the full fiscal year 2025 (FY25), the company reported net sales of Rs 533 crore, down from Rs 569 crore in FY24. Net profit for FY25 also saw a decline, reaching Rs 109 crore compared to Rs 121 crore in FY24.  The company has a market cap of over Rs 2,900 crore with an ROE of 18 per cent and an ROCE of 24 per cent. The stock is up by 37 per cent from its 52-week low of Rs 192.05 per share and has given multibagger returns of over 700 per cent in 5 years.

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