Black Box board approves 5:1 stock split. Details here
Premium- Black Box's board has approved the proposal for stock split of from face value of ₹10 each into equity shares of face value of Re 2 each
IT products and solutions provider Black Box, a wholly owned subsidiary of AGC Networks, announced that its board has approved the proposal for sub division of equity shares or stock split of the company from face value of ₹10 each into equity shares of face value of Re 2 each.
The company's existing 1 (one) equity share of face value of ₹10/ - (Rupees Ten only) each will be split or sub divided into 5 (Five) equity shares of face value of Re 2/ - (Rupee Two only) each, it said.
“The board of directors of the company, at its meeting held on March 14, 2022 has, inter-alia, approved the proposal for Sub division/split of equity shares of the Company from face value of Rs. 10/- each into Equity Shares of face value of Re. 2/- each, subject to the approval of the members of the company through the ensuing postal ballot," the company said in an exchange filing.
Black Box said that the rational for the stock split is to facilitate larger shareholder base to increase liquidity in the capital market and to make shares more affordable to small shareholders. Last month, the company had announced that its board will meet on March 14, 2022 to consider & approve stock split or sub-division of equity shares.
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Shares of Black Box were trading over a per cent higher at ₹792 apiece on the BSE in Wednesday's early deals. The scrip has declined about 18% in 2022 (year-to-date or YTD) so far whereas, the smallcap IT stock has fallen 22% in a year's period.
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