Mumbai | 07-Oct-2025, 09:30 IST — Shares of Sayaji Industries Ltd (SAYAJIIND) turned ex-bonus on Tuesday as the company’s 3:1 bonus issue came into effect. The move means shareholders holding one share will now be entitled to three additional shares, increasing the company’s outstanding equity base and expanding free float in the market.
Sayaji Industries Ltd (SIL)
Sayaji Industries Ltd (SIL) is one of India’s largest corn refiners, with a legacy of over 70 years in the corn wet milling business. Established originally to cater to textile units, the company has evolved into a diversified manufacturer of starches and corn-based derivatives.
SIL produces a wide range of products including modified starches, liquid glucose, dextrose monohydrate, dextrose anhydrous, and sorbitol, which find applications across multiple industries and daily life. Its R&D laboratory plays a key role in developing new applications of corn, import-substitute products, and process innovations that have saved substantial foreign exchange for the country.
On the quality front, SIL is ISO 9001:2008 certified, reflecting its commitment to global standards. It has also been granted Export House Status by the Government of India, cementing its position as the largest exporter in the Indian starch industry.
What the Bonus Means
A bonus issue is a corporate action where a company issues additional shares to existing shareholders without taking in new capital. Instead, reserves are capitalized and converted into equity. For Sayaji Industries, the 3:1 ratio effectively multiplies the share count by four, since every shareholder’s holding increases four-fold.
While this reduces the quoted stock price in proportion, shareholder wealth remains unchanged as the value of total holdings stays the same. For instance, a shareholder holding 100 shares before the ex-bonus date will now hold 400 shares at one-fourth of the earlier price.
Market Impact: Liquidity and Spreads
The immediate effect of the bonus is to expand liquidity. More shares in circulation generally lead to narrower bid-ask spreads and greater participation from retail investors, as the lower adjusted price makes the stock more accessible.
Market observers often point out that in the first 2–3 sessions after the ex-date, delivery volumes rise significantly as fresh buy/sell orders are entered based on the new reference price. The bonus-adjusted stock usually takes a few days to find equilibrium, during which VWAP (Volume Weighted Average Price) trends are closely monitored by traders.
What to Watch This Week
- Delivery Percentages (Day 1–3): A high delivery percentage would indicate that long-term investors are holding on to the bonus shares rather than churning them in intraday trade.
- VWAP Drift: Traders are advised to compare the opening prints with the pre-bonus adjusted reference price to assess how efficiently the market is absorbing the new supply.
- Exchange Circulars: Any quick update on lot sizes or tick size adjustments will be key for derivatives and algorithmic traders who rely on precision in trade execution.
Outlook
The 3:1 bonus issue of Sayaji Industries reflects management’s confidence in its reserves position and a willingness to reward shareholders. Such corporate actions are typically seen as shareholder-friendly measures, aimed at improving liquidity and widening retail participation.
If delivery volumes stay robust and institutional flows emerge, the bonus-adjusted stock could attract a new investor base while deepening liquidity. However, traders will be watching closely whether the move triggers only short-term speculative spikes or leads to sustained interest in the counter.
With PSU metals, NBFCs, and IT infra names already in focus on the broader tape, Sayaji Industries’ bonus-adjusted listing adds another dynamic to the market’s corporate action calendar this week.
