Shares of Bhatia Communications & Retail (India) Ltd surged to upper circuit level of 5% to ₹32 a piece on the BSE in Wednesday’s early deals on record date of the stock split. It decided to split its shares in the ratio of 10:1 and the record date for stock split was fixed on 16th February 2022. The counter started trading ex-split from Wednesday.
“We write to inform you that the board of directors of the company has fixed Wednesday, February 16, 2022 as the Record Date for determining the eligibility of shareholders with regard to the sub-division of each equity share of face value of Rs. 10/- each into ten equity shares of face value of Re. 1/- each as approved by the shareholders in the extra ordinary general meeting held on 22 January, 2022,” the company had announced in an exchange filing.
The board of the company had decided to consider subdivision of equity shares or stock split on 27 December 2021. A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.
A company engages in stock-split decision to make its stock more affordable if its price levels are very high, which in thus would lead to increase in liquidity in the stock.
Bhatia Communications & Retail (India) is engaged into retail and wholesale distribution business of mobile handsets, tablets, data-cards, mobile accessories, and mobile related products. The multibagger stock has surged more than 350% in a year’s period.
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