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Shares of Fineotex Chemical surged 16.6% on Thursday, its highest intra-day gains since May 2023.
The small-cap specialty chemicals stock climbed to its highest in nearly two months.
Why Is The Stock Surging?
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After market hours on Wednesday, the company announced that its board of directors will meet on September 27 to consider key corporate actions, which include an interim dividend, a sub-division of shares with a face value of ₹2, and the issue of bonus shares.
If approved, this will mark the first stock split and bonus issue by Fineotex in a decade. In 2015, the company carried out a 1:5 stock split and issued a 1:1 bonus, with its most recent dividend payout being ₹0.40 per share.
Ace investor Ashish Kacholia holds a 2.74% stake, or about 31.35 lakh shares, in Fineotex.
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Retail Buoyant
Retail sentiment shifted to ‘bullish’ on Stocktwits following the official announcement. It was ‘neutral’ the day before.

Despite today’s gains, the stock has declined over 24% year-to-date. It has fallen in five of the last seven sessions.
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