Shares of KPR Mill rallied 10 per cent to hit a new high of Rs 1,868 on the BSE in intra-day trade on Thursday after the company said it will consider stock split in the forthcoming board meeting on July 27, 2021.
The stock of the textiles company surpassed its previous high of Rs 1,780 touched on July 6, 2021. In the last three months, the scrip has zoomed 74 per cent as compared to a 7 per cent rise in the S&P BSE Sensex.
“A meeting of the board of directors of the Company is scheduled to be held on July 27, 2021, to consider the proposal for sub-division of the face value of the equity shares of the Company, subject to the approval of shareholders,” KPR Mill said in an exchange filing. The board will also consider the un-audited financial results for the quarter ended June 30, 2021 (Q1FY22).
The company will sub-divide the face value of equity shares from Rs 5 each to a lower denomination to make the stock more affordable for the small retail investors and increase liquidity.
Stock split refers to splitting the face value of the shares of companies. When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.
At 09:35 am, the stock of KPR Mill was up 6 per cent at Rs 1,793 on the BSE while the S&P BSE Sensex was flat at 53,056 points around the same time. A combined around 140,000 shares had changed hands on the counter on the NSE and BSE so far.
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