In a significant development for investors, chemical trading and logistics firm A-1 has announced crucial corporate actions that could reshape shareholder value. The company's board will meet on November 14 to consider multiple proposals including bonus share issuance, stock split, and dividend declaration.
Corporate Action Details
The board meeting scheduled for November 14 will address three major proposals that could significantly impact shareholder returns. According to the company's exchange filing, the board will consider issuing bonus shares in the ratio of 5:1, meaning shareholders could receive 5 additional shares for every 1 share held.
Additionally, the company plans to execute a stock split in the ratio of 10:1, subdividing each existing equity share into up to 10 smaller shares. This move typically makes shares more affordable to retail investors and enhances liquidity in the market.
The third proposal involves declaring a dividend of up to 50% on the paid-up equity share capital for the current financial year. All these corporate actions are subject to approval from shareholders and regulatory authorities.
Impressive Stock Performance
A-1 shares have been performing exceptionally well in the market, justifying their multibagger status. The stock closed at ₹1,655.30 apiece on Friday, November 7, registering a 5% gain for the day.
The chemical stock has delivered staggering returns to investors across different time frames. In just six months, the stock has surged 225%, while over a one-year period, it has generated massive returns of 369%. The long-term performance is even more impressive, with the stock skyrocketing 2,615.39% over five years, effectively multiplying investor wealth more than 25 times.
Strategic Expansion into EV Sector
Beyond corporate actions, A-1 is strategically positioning itself for future growth in emerging sectors. The company recently increased its partnership interest in A-1 Sureja Industries from 45% to 51% at an enterprise value of ₹100 crore.
This acquisition is particularly significant as A-1 Sureja Industries manufactures battery-operated two-wheelers under the brand Hurry-E. This strategic move makes A-1 Ltd one of India's first listed chemical companies to directly hold equity in a certified EV manufacturing enterprise.
The company's long-term vision aims to transform A-1 into a multi-vertical green enterprise by 2028, integrating low-emission chemical operations with clean mobility solutions. This transformation positions the company as a future-ready mid-cap ESG leader with diversified revenue streams and scalable manufacturing capabilities.
Investors will also be watching for the company's September quarter results (Q2 FY26), scheduled for announcement on Tuesday, November 11, just days before the crucial board meeting that will decide on these corporate actions.
