Specialty Chemical Stock Alert! Big 1:2 Stock Split & 3:1 Mega Bonus Shares Soon; Buy After Twin Surprise?

Paushak, a proud part of the 118-year history of the Alembic Group, was founded in 1968. The oldest pharmaceutical firm in India is the Alembic Group, which was established in Vadodara, Gujarat, in 1907. Paushak has been the leading manufacturer of specialty and customized phosgene derivatives in India for the past 57 years. It has a state-of-the-art phosgene factory that can produce 14,400 MT annually. In the midst of market turmoil, the company announced bonus shares and a stock split, which attracted trading in the specialty chemical stock Paushak today.

Paushak Stock Split & Bonus Shares

The Board of Directors of the company at its meeting held today on 11th August, has inter-alia considered and recommended "Sub-division of 1 (one) equity share of face value of Rs 10/- each fully paid-up into 2 (two) equity shares of face value of Rs 5/- each fully paid-up held by the shareholders of the Company as on the record date," said Paushak in a stock exchange filing.

Paushak said the rationale behind the above stock split is to enable higher participation from public shareholders. As a result, the 11,00,000 preference shares of Rs 100 each will be eliminated, and the company's authorized equity share capital would rise from 90,00,000 shares of Rs 10 each to 4,00,00,000 shares of Rs 5 each. The paid-up and subscribed equity shares will also double from 30,82,114 shares of Rs 10 each to 61,64,228 shares of Rs 5 each.

Paushak also informed the stock exchanges on Monday that its Board of Directors in addition to stock split, has also considered and declared "Issue of bonus equity shares in the ratio of 3:1 i.e., 3 (three) bonus equity shares of Rs 5/- each for every 1 (one) equity share of RS 5/- each fully paid-up held by the shareholders of the Company as on the record date."

1,84,92,684 equity shares of Rs 5/- each fully paid-up are the total number of securities proposed to be distributed as a part of bonus shares by the company. This will increase the company's paid-up and subscribed equity share capital from 61,64,228 shares to 2,46,56,912 shares, while the authorised capital remains unchanged at 4,00,00,000 equity shares of Rs 5 each. The bonus issue will be implemented using Rs 9.25 crore from the company's free reserves, which stood at Rs 359.64 crore including Rs 3.14 crore in Capital Redemption Reserve as on March 31, 2025.

As per the details provided by the company, "for every 1 (one) equity share of face value Rs 10/- each held by the shareholders, they will be eventually holding 8 (eight) equity shares of face value of Rs 5/- each fully paid-up, post completion of the corporate actions."

Subject to the required approvals, these corporate actions, which aim to improve liquidity and shareholder engagement, are anticipated to be finished by October 10, 2025, at the latest.

Paushak Financials

Paushak's net profit increased 16.68% to Rs 12.03 crore in the June 2025 quarter compared to Rs 10.31 crore in the June 2024 quarter. In the quarter ending in June 2025, sales climbed 7.44% to Rs 55.88 crore from Rs 52.01 crore in Q1FY25.

Paushak Target Price

"Paushak Limited is consolidating above ₹6,050 support, with resistance at ₹6,250. A breakout above this level could trigger an up-move toward ₹6,500. The stock is trading well above its major moving averages, reflecting underlying strength in the broader trend. RSI indicates sustained momentum, and volume activity is stable. Dips toward ₹6,080-₹6,100 may be used for fresh long entries, keeping a stop-loss at ₹6,000. A sustained breakout would reinforce bullish sentiment, offering scope for medium-term gains," commented Riyank Arora, technical analyst at Mehta Equities Ltd.

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