AVI Polymers Ltd increases authorized capital and approves share split amid strategic diversification pivot
AVI Polymers Ltd has undertaken significant corporate restructuring, approving an increase in its authorized share capital, a bonus issue, and a sub-division of equity shares as part of its strategic move into sustainable industries. The Board meeting on June 4, 2026, finalized these decisions while also greenlighting the company's diversification into high-growth environmental sectors.The company approved altering and increasing its Authorized Share Capital from Rs 1,00,00,00,000 (Rupees Hundred Crore Only), comprising 10,00,00,000 Equity Shares of Rs 10/- each, to Rs 1,05,00,00,000 (Rupees One Hundred and Five Crore Only). This increased capital is authorized to be divided into 10,50,00,000 Equity Shares of Rs 10/- each.
Bonus Issue Details
The Board approved the issuance of bonus equity shares in a ratio of 1:10 (One bonus equity share for every Ten existing fully paid-up equity shares) to eligible shareholders, subject to necessary statutory approvals. This bonus issue is funded by Free reserves and is expected to be credited within two months from the date of Board approval.Key details concerning the pre-bonus and post-bonus capital structure include:
| Particulars | Pre-Bonus Issue Status | Post-Bonus Issue Status |
|---|---|---|
| Paid Up Share Capital | Rs 94,08,61,000 (9.40,86,100 Equity Shares) | Rs 103,49,47,100 (10,34,94,710 Equity Shares) |
| Funding Source | Utilization of Balance of Free Reserves (Rs 9.40,86,100) | N/A |
| Free Reserves Available | Rs 215,20,16,17 as of March 31, 2026 | N/A |
Share Split Mechanics
Further, the company approved the sub-division or split of the face value of its Equity Shares. The existing Equity Shares, which have a face value of Rs 10/- (Rupees Ten Only), will be divided into ten Equity Shares each having a face value of Re. 1/- (Rupee One Only).The restructuring of the share capital structure details are summarized below:
| Capital Aspect | Pre-Split Status | Post-Split Status |
|---|---|---|
| Share Type | Equity Shares | Equity Shares |
| Shares Ratio | 10 (Face Value Rs. 10/-) | 1 (Face Value Re. 1/-) |
| Total Share Capital | Rs 1,03,49.47,100 (Subject to Bonus Issue) | Rs 1,03,49,47,100 (Subject to Bonus Issue) |
The rationale for the split was stated as improving the liquidity of the Company's shares in the stock market and making them affordable to small retail shareholders. The expected time for completion of this process is within five months from shareholder approval.
Strategic Pivot into Green Tech
In addition to these financial adjustments, the Board deliberated upon and approved a strategic pivot toward high-growth sustainable industries. This pivot encompasses Industrial Waste Management Systems, Advanced Material Recycling Technology, and Carbon Footprint Optimization & Sustainability Consulting Services.The company also appointed Mr. Abhishek Prakashchand Chhajed, partner of SCS AND Co. LLP, as Scrutinizer for conducting the postal ballot through remote e-voting to ensure transparency in passing the proposed resolutions.
Stock Price Movement
AVI Polymers Ltd settled on Wednesday at ₹17.59 after ticking up 4.95%. The shares saw extremely tight trading during the session, moving between a low of ₹17.58 and a high of ₹17.59.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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