Investor’s Lottery! ‘This’ Multibagger share will give bonus and double bang of stock split

Multibagger Stock : Shares of ‘AVI Polymers Limited’, a polymer manufacturer, closed at ₹15.21 on Friday, May 29, touching the ‘upper circuit’ limit of 5%. A very important meeting of the Board of Directors of the Company is scheduled on June 4, 2026. During this meeting, proposals for ‘stock split’ i.e. shares in the ratio of 1:10 and distribution of ‘bonus shares’ in the ratio of 10:1 will be considered and approved. After the company disclosed this development to the stock markets last Friday, the share price saw an immediate surge.

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What will be the benefit to investors?

If both these proposals are indeed approved by the board of directors, the number of shares currently held by investors will increase significantly compared to earlier. A ‘stock split’ in the ratio of 1:10 will split one share you currently hold with a face value of ₹10, into 10 shares of face value of ₹1 each. After this share split, you will get 10 free bonus shares for every share you hold. To understand this better: If you currently own 100 shares of ‘AVI Polymers’, then after the 1:10 split, the number of shares will increase to 1,000.

Also, after allotment of bonus shares in the ratio of 1:10, you will get 10,000 free bonus shares in exchange for 1,000 shares held by you. As a result, your total number of shares will reach 11,000. It is important to note here that as the number of shares increases by 110 times, their market price will decrease by the same amount. However, the value of your total shareholding will remain unchanged.

Shares earn profits

With a market capitalization of around ₹143.10 crore, the company has delivered a multi-bagger return of around 138% to 140% over the past year. It has a 52-week high of ₹29.41 and a low of ₹5.43. Apart from its chemical and polymer businesses, the company is now gearing up to enter new and promising areas such as green technology, waste management and recycling.

(The information provided here is for informational purpose only. It is important to note that investing in the market is subject to market risk. Always consult an expert before investing. Navarashtra.com never recommends investing here.)

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