SC Agrotech Limited approves 10-for-1 split, bonus issue

SC Agrotech Limited approved a proposed 10-for-1 share split and 4-for-5 bonus issue on 13 November 2026, a sequence that could convert 1,000 eligible shares into 18,000 shares if shareholders approve both actions and the holder qualifies on the respective record dates. The company says the actions do not themselves increase investment value.

What has SC Agrotech approved for shareholders?

SC Agrotech approved a proposed 10-for-1 subdivision and a 4-for-5 bonus issue on 13 November 2026. Under the split, one fully paid-up equity share with a face value of ₹10 would be divided into 10 fully paid-up shares with a face value of ₹1 each, subject to shareholder consent and applicable regulations.

SC Agrotech would issue four bonus equity shares for every five eligible shares held after the relevant approvals and record-date conditions are met. The company says the actions are intended to improve share accessibility and broaden participation, but neither the split nor the bonus has been implemented as of the announcement date.

SC Agrotech's illustration assumes the subdivision occurs before the bonus issue. On that basis, 1,000 existing shares become 10,000 after the split, and a holder then receives 8,000 bonus shares, equal to four-fifths of the enlarged holding, to reach 18,000 shares.

How would SC Agrotech's share split work?

SC Agrotech's proposed share split would replace one ₹10 face-value share with 10 ₹1 face-value shares. For example, a holding of 100 shares would become 1,000 shares, while the aggregate face value represented by the holding would remain ₹1,000.

SC Agrotech identifies an extraordinary general meeting, or EGM, and approvals on 11 December as the next step in its illustrated timeline. The company has not announced a split record date, and its pathway shows record-date announcements before implementation.

The order of the two actions matters because the disclosed 18,000-share example calculates the 4-for-5 entitlement on 10,000 post-split shares. A holder must be eligible on each respective record date for the 1,000-to-18,000 outcome, rather than merely holding shares on 13 November 2026.

SC Agrotech says a subdivision changes the number of shares held and adjusts the theoretical market price, without itself creating a corresponding increase in investment value. It also states that actual market liquidity is not guaranteed by the proposed 10-for-1 split.

What would SC Agrotech's bonus issue add?

SC Agrotech's proposed 4-for-5 bonus issue would add four equity shares for every five eligible shares held. If it follows the 10-for-1 split, 10,000 post-split shares would receive 8,000 bonus shares, producing the stated 18,000-share illustration.

The 4-for-5 ratio increases the number of eligible shares at that stage by 80%, calculated as four additional shares for every five held. SC Agrotech has not disclosed a bonus record date, allotment date or implementation date in the 13 November 2026 announcement.

SC Agrotech does not describe the bonus issue as a cash payment. The company says the theoretical market price adjusts for both a bonus issue and a subdivision, so the 18,000-share illustration does not represent an 18-fold increase in the value of an original 1,000-share holding.

What financial results accompanied the corporate actions?

SC Agrotech reported standalone operating revenue of ₹45.26 crore and profit after tax, or PAT, of ₹10.21 crore for the quarter ended 30 September 2026. The company describes the Q2 FY27 results as unaudited and subject to accompanying limited-review observations.

SC Agrotech's Q2 FY26 revenue was ₹5.02 crore and PAT was ₹0.21 crore. Revenue rose 802% year on year, according to the release, while Q2 FY27 PAT was about 48 times the prior-year quarter's ₹0.21 crore figure.

SC Agrotech reported H1 FY27 revenue of ₹83.11 crore and PAT of ₹19.77 crore for the six months ended 30 September 2026. It compared the six-month PAT with ₹3.34 crore for the full FY26, while cautioning that the periods have different durations and relate to its existing business.

What is the current position of AgriBridge?

SC Agrotech says AgriBridge is publicly accessible and is designed to connect farmers, suppliers and institutional buyers through product discovery, enquiries, quotations and transaction coordination. The company has not included AgriBridge revenue in its reported ₹83.11 crore H1 FY27 revenue or ₹19.77 crore H1 FY27 PAT.

SC Agrotech describes the platform workflow as farmers offering produce, buyers reviewing enquiries and operations coordinating fulfilment. The announcement says monetisation is yet to be demonstrated, distinguishing the live public-access platform from reported operating income for the six months to 30 September 2026.

SC Agrotech has shown hypothetical AgriBridge gross merchandise value, or GMV, scenarios of ₹125 crore for FY28, ₹500 crore for FY29 and ₹1,000 crore for FY30. GMV is the value of merchandise facilitated through a platform, not revenue recognised by the company.

SC Agrotech labels the related FY28 revenue assumption of ₹6.5 crore and FY30 revenue assumption of ₹52 crore as illustrative, using a 5.2% monetisation rate. The company says the revenue, PAT, capital assumptions of ₹10 crore and ₹100 crore, and other outputs are not achieved results, contracts, forecasts or Board-approved expenditure.

What must happen before the actions are implemented?

SC Agrotech must obtain shareholder consent and meet applicable regulatory requirements before it can implement the 10-for-1 split and 4-for-5 bonus issue. Its 13 November 2026 timeline places the EGM and approvals on 11 December, followed by record dates and implementation.

SC Agrotech has not disclosed final record dates for either action. Those dates will determine entitlement, meaning the illustrative movement from 1,000 to 18,000 shares remains conditional on approval, the stated sequence and a shareholder's eligibility at both record dates.

SC Agrotech says it will disclose further material developments, including corporate-action approvals, record dates and actual AgriBridge traction, in accordance with applicable requirements. Management also states that outcomes depend on approvals, commercial execution, economic conditions and other risks, and that no return is assured.

Conclusion

SC Agrotech has paired proposed shareholder actions with a sharp reported increase in standalone Q2 FY27 revenue and PAT. The split and bonus could materially increase an eligible holder's share count, but their stated mechanics adjust the theoretical price and do not, by themselves, create additional investment value.

The next disclosed milestone is the 11 December EGM and approvals process, followed by any record-date announcements. Investors can also watch for evidence of AgriBridge commercial traction, since the FY28 to FY30 GMV, revenue and PAT figures are hypothetical scenarios rather than reported platform results.