Multibagger Penny Stock Below Rs 20 Announced 1:10 Bonus Issue, 10:1 Stock Split; Authorised Capital Increased To Rs 105 Crore

On Friday, Indian equity benchmarks ended lower, with the benchmark Nifty 50 index declining 0.23 per cent to close at 23,362.95. Despite the weak market sentiment, AVI Polymers share price gained 4.95 per cent to Rs 17.59. Notably, the stock remained suspended from trading on the BSE on June 4 and June 5, 2026, and was last traded before the suspension. The company remained in focus after announcing multiple corporate actions, including a Bonus issue, Stock Split, increase in authorised share capital and strategic business diversification initiatives.

AVI Polymers Board Approves 1:10 Bonus Issue

The Board of Directors approved the issuance of bonus equity shares in the ratio of 1:10, meaning shareholders will receive one bonus share for every ten fully paid-up equity shares held as on the record date, which will be announced separately. The bonus shares will rank pari passu with the existing equity shares of the company.

According to the company's disclosure, the pre-bonus paid-up equity share capital stands at Rs 94.09 crore, comprising 9.41 crore equity shares of Rs 10 each. Following the bonus issue, the paid-up equity share capital is expected to increase to Rs 103.49 crore, comprising 10.35 crore equity shares.

AVI Polymers 10:1 Stock Split Approved

The company has also approved a 10:1 stock split, subject to shareholder approval. Under the proposal, every equity share with a face value of Rs 10 will be subdivided into 10 equity shares having a face value of Re 1 each.

According to the company, the stock split is intended to improve liquidity in the market and make the shares more affordable for retail investors, thereby broadening shareholder participation. The process is expected to be completed within five months from shareholder approval.

AVI Polymers Authorised Capital Increased

The Board also approved an increase in the company's authorised share capital from Rs 100 crore to Rs 105 crore, divided into 10.50 crore equity shares of Rs 10 each, subject to necessary approvals.

AVI Polymers Diversification Into Green Technology Businesses

In addition to the corporate actions, AVI Polymers announced a strategic diversification into sustainability-focused sectors. The company plans to expand into industrial waste management systems, advanced material recycling technology, and carbon footprint optimisation and sustainability consulting services. The company stated that detailed disclosures regarding these initiatives will be provided separately.

About AVI Polymers 

AVI Polymers Ltd is engaged in the polymers and allied products business and is listed on the BSE. The company announced the latest corporate actions following a Board meeting held on June 4, 2026.

The company has also approved a postal ballot process to seek shareholder approvals for the bonus issue, stock split and related proposals.

What are your views on AVI Polymers' bonus issue, stock split and green technology expansion plans? Share your thoughts in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.