Fineotex Chemical Shares Surge More Than 14% As Board Mulls Dividend, Bonus Issue, Stock Split

Shares of Fineotex Chemical Ltd. jumped as much as 14% on Thursday's trade, reaching an intraday high of Rs 267.

The rally in Fineotex Chemicals comes on the back of the company's board meeting announcement on Sept 27., where it will consider a range of corporate actions including interim dividend, a stock split and bonus.

In a filing to the exchanges, the company confirmed that the board would discuss the declaration of an interim dividend, the issue of bonus shares, and an increase in authorised share capital.

The company further added that the trading window for its securities will remain closed 48 hours after the conclusion of the meeting.

This announcement has triggered a sharp rally in the stock, which has seen strong correction in the recent past.

Over a year-to-date period, shares of Fineotex Chem have fallen almost 20%. In the last 12 months, the stock has fallen almost 35%.

The stock currently trades at a relative strength index of 52, which suggests neutral market sentiment around the stock. The stock is still far away from its all-time high of Rs 458.

Headquartered in Mumbai, Fineotex is involved in the manufacturing of textile auxiliaries, speciality chemicals, and adhesives. The company caters to both domestic and international markets.

The company is one of the beneficiaries of the "China plus one" play, which has boosted demand for Indian speciality chemical companies.