Rajratan Global Wire informed that its board of directors at their held on Friday have approved the sub-division/stock split of existing 1 equity share of ₹l0/- each fully paid up into 5 equity shares of ₹2 each fully paid up, subject to approval of members through postal ballot.
The company added that the stock split decision has been taken to facilitate larger shareholder base, to increase the liquidity and to make the shares more affordable to investors. The record date for the said stock split will be intimated in due course subject to compliance of necessary laws, it added.
Shares of Rajratan Global Wire surged over 5% on the BSE in Friday’s trading session after the 1:5 stock split announcement. Rajratan Wire shares have given multibagger return of over 393% in a year’s period, whereas the stock is up over 26% in 2022 (year-to-date or YTD) so far. The company is a leading bead wire manufacturer & supplier to tyre companies.
A stock split happens when a company divides its stock into more shares. However, the total value of holdings remains unchanged, which means the price of the shares falls proportionately. This is typically seen as a means of boosting liquidity by making shares affordable for small-scale and retail investors.
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