SC Agrotech proposes 10:1 stock split, 4:5 bonus issue

SC Agrotech, a company in the agriculture sector, has proposed significant changes to its share structure. The company aims to execute a 10-for-1 stock split and a 4:5 bonus issue following a remarkable surge in its net profit, which increased nearly 48 times year-on-year in the September quarter. The Board of Directors approved these proposals on Friday, pending shareholder and other necessary approvals.

Under the proposed structure, an investment of 400 shares would expand to 4,000 shares post-split and be augmented by an additional 3,200 shares through the bonus issue, culminating in a total holding of 7,200 shares. The company is set to hold an extraordinary general meeting on December 11 to garner shareholder approval for these changes. The specific record dates for these corporate actions have not been disclosed yet.

The Board also considered the possibility of increasing the company's authorized equity share capital by ₹61 crore, but no dividend has been declared yet. This decision is anticipated to be revisited in a future quarter. SC Agrotech has recently launched AgriBridge, a digital platform facilitating agriculture commerce between farmers, suppliers, and institutional buyers.

The company believes in a hypothetical annual gross merchandise value reaching ₹1,000 crore and potential platform revenue of ₹52 crore, assuming a 5% monetisation rate. However, the ultimate performance will hinge on platform adoption, transaction volumes, and revenue generation.

The company's shares were trading at ₹62 on Friday, reflecting a 5% increase. As per the rules, comments should be in English, written as full sentences, and must adhere to the community guidelines. Users can access their older comments by logging into their accounts on Vuukle.