Description

NSE announces face value split of FCL equity shares from Rs. 2 to Re. 1, effective October 31, 2025.

Summary

The National Stock Exchange of India has announced a face value split for Fineotex Chemical Limited (FCL). The face value and paid-up value of FCL’s equity shares will be reduced from Rs. 2 to Re. 1 per share, effective October 31, 2025. This is a standard corporate action that increases the number of outstanding shares while proportionally reducing the price per share.

Key Points

  • Company affected: Fineotex Chemical Limited (Symbol: FCL)
  • Existing face value: Rs. 2 per share
  • New face value: Re. 1 per share
  • Split ratio: 1:2 (each existing share will become 2 shares)
  • Effective date: October 31, 2025
  • Circular reference: NSE/CML/71011, Circular No. 2100/2025

Regulatory Changes

No new regulatory changes are introduced. This circular notifies members of a corporate action approved by the company and being implemented through the exchange.

Compliance Requirements

  • Exchange members must update their systems to reflect the new face value effective October 31, 2025
  • Trading and settlement systems must be adjusted for the post-split share structure
  • Investors holding FCL shares will automatically receive proportionally increased share quantities at reduced face value

Important Dates

  • Circular Date: October 29, 2025
  • Effective Date: October 31, 2025 - Face value split takes effect

Impact Assessment

Market Impact: Medium. Face value splits typically improve liquidity by making shares more affordable to retail investors. The stock price will adjust proportionally, with shareholders receiving double the number of shares at half the price.

Operational Impact: Exchange members and brokers need to ensure their systems are updated before the effective date to handle the new share structure. Existing shareholdings will be automatically adjusted in demat accounts.

Investor Impact: Positive for retail investors as lower face value and reduced share price improve affordability and trading flexibility. Total investment value remains unchanged as the number of shares doubles while price halves.

Impact Justification

Face value split is a routine corporate action affecting equity shareholders of FCL, requiring system updates and investor awareness but no immediate trading restrictions