Paushak Limited, a leading player in India’s chemical manufacturing sector, has officially announced the allotment of 1,84,92,684 bonus equity shares in a 3:1 ratio. This means three new fully paid-up shares of Rs. 5 each have been issued for every one existing fully paid-up share of Rs. 5 each held by eligible shareholders. The allotment was finalised in the Allotment Committee meeting held on October 6, 2025, which is also considered the deemed date of allotment.

The company, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informed the BSE Limited about this significant corporate action through an official communication signed by Mr. Sagar Gandhi, Company Secretary.

Background and Record Date

The announcement follows prior intimations by the company on August 11, August 18, September 17, and September 18, 2025. The Record Date for determining shareholders eligible for the bonus issue was October 3, 2025. Shareholders whose names appeared in the Register of Members or Register of Beneficial Owners as of that date were eligible to receive the 3-for-1 bonus shares.

This corporate action has been executed to reward shareholders, improve liquidity in the market, and strengthen investor confidence in the company’s financial performance and long-term prospects.

Details of the Bonus Allotment

During the meeting held at the company’s Panelav facility in Gujarat, the Allotment Committee approved the issue of 1,84,92,684 new equity shares, bringing the total paid-up equity share capital to Rs. 12,32,84,560, divided into 2,46,56,912 shares of Rs. 5 each.

Before this allotment, the company’s paid-up capital stood at Rs. 3,08,21,140, represented by 61,64,228 shares of Rs. 5 each. The increase marks a substantial growth in equity capital, highlighting the company’s strong balance sheet and capacity to reward shareholders.

The meeting commenced at 9:00 a.m. and concluded by 9:15 a.m., marking the official approval and allotment process.

Significance of the Bonus Issue

Issuing bonus shares is a common way for listed companies to reward their shareholders without changing the overall market capitalisation. It reflects management’s confidence in the company’s growth and profitability. For Paushak Limited, this 3:1 bonus issue serves multiple strategic purposes:

• It enhances shareholder value by providing additional shares free of cost

• It increases the liquidity of shares in the market, making them more accessible to a broader base of investors

• It sends a positive signal about the company’s strong financial health and reserves

Company Overview

Paushak Limited, headquartered in Vadodara, Gujarat, is part of the Alembic Group, one of India’s oldest and most respected industrial conglomerates. The company is engaged in the manufacture of phosgene and phosgene-based specialty chemicals, catering to industries such as pharmaceuticals, agrochemicals, and performance materials.

With a state-of-the-art production facility in Panelav, Paushak has built a reputation for safety, quality, and innovation. Its consistent growth trajectory and focus on niche chemical manufacturing have positioned it as a key player in the specialty chemical industry in India and abroad.

Financial Implications

The bonus issue increases the company’s total equity base, which may reduce the share price per unit proportionally while maintaining the same overall market capitalisation. This makes the shares more affordable and attractive to retail investors.

At the same time, it reflects management’s long-term strategy to ensure strong shareholder engagement while balancing capital reserves and distribution policies. The decision comes amid a period of robust performance and expansion in the specialty chemicals sector, where demand has remained resilient.

Compliance and Governance

The company has adhered to all regulatory and procedural requirements under the SEBI Listing Regulations. The disclosure was made promptly to the BSE Limited, demonstrating Paushak Limited’s commitment to good corporate governance and transparent investor communication.

The company’s communication also confirms that the bonus equity shares are issued to all eligible members as per the Record Date, and the shares will rank pari passu in all respects with the existing equity shares. This ensures equal rights and benefits for both new and existing shareholders.

Market Outlook and Shareholder Impact

The Indian specialty chemical industry has been witnessing steady growth, driven by global supply chain diversification and increased domestic demand. Paushak’s strategic move to issue bonus shares aligns with its growth ambitions and reaffirms its shareholder-friendly approach.

Post-allotment, the company’s paid-up capital base of Rs. 12.32 crore will give it a stronger foundation for future expansion, R&D investments, and business diversification.

This development is also expected to increase trading activity in Paushak’s stock, attract new investors, and boost confidence among long-term shareholders.

Conclusion

The allotment of 1.84 crore bonus shares in a 3:1 ratio marks a significant milestone for Paushak Limited. It underlines the company’s financial strength, robust performance, and commitment to rewarding shareholders.

By expanding its equity capital and adhering to the highest standards of regulatory compliance, Paushak continues to demonstrate its leadership in the specialty chemical sector.

The company’s clear communication, swift execution, and transparency reinforce investor trust and strengthen its reputation as a responsible and growth-oriented organisation.

As the new shares get credited to the shareholders’ demat accounts, Paushak Limited looks well-positioned to continue its upward trajectory, backed by strong fundamentals, strategic vision, and shareholder confidence.

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