In a prior exchange filing, the company had informed that the board meeting would, inter alia, take up approval of the unaudited financial results for the quarter ended June 30, 2025. Alongside the quarterly earnings, the board will also discuss the declaration of a special interim dividend for the financial year 2025–26.
“In compliance with Regulation 29 of the SEBI Listing Regulations, we wish to inform you that at the said meeting, the Board would also consider the following proposal(s): i. Declaration of a Special Interim Dividend on the equity shares of the Company, for the Financial Year 2025-26; and ii. Issue of bonus shares in accordance with the applicable provisions and subject to approval of Shareholders of the Company,” the company had said.
The proposal for issuing bonus shares, if approved by the board, would be subject to shareholder approval as well.
If approved, this will be the first bonus share issue by the company after its last 1:1 bonus share issue in March 2010, according to Trendlyne data.
The company also confirmed that the trading window for dealing in securities remains closed until August 8, in line with SEBI regulations.Further details regarding the bonus ratio, record date, or quantum of dividend, if any, are expected to be disclosed after the outcome of today’s meeting.A bonus share issue is when a company distributes additional shares to its existing shareholders free of cost, in proportion to their current holdings. For example, in a 1:1 bonus issue, shareholders receive one extra share for every share they already own.
It is relevant because it rewards shareholders without affecting the company’s cash reserves and often signals management’s confidence in the company’s future earnings.
While the overall value of a shareholder’s investment remains the same immediately after the issue (since the share price adjusts accordingly), the number of shares held increases, potentially improving liquidity and making the stock more affordable for new investors.
At 11:15 am, shares of Pidilite Industries were trading flat at Rs 2,998.40 on the BSE.
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