Textile stock hits upper circuit after announcing 1:10 stock split
Premium- The record date for stock split shall be decided by the board and will be intimated to exchange, the company added
Garment Mantra Lifestyle Ltd announced that its board at its meeting has considered and approved the stock split (sub division of equity shares) of company’s 1 equity share in to 10 equity shares i.e., in the ratio of 1:10. Shares of Garment Mantra hit the upper circuit level of 5% to ₹103.9 apiece on the BSE in Tuesday's opening deals.
In this respect, the record date shall be decided by the board and will be intimated to exchange, the textile manufacturer announced in an exchange filing on Monday.
“we wish to inform you that a meeting of Board of Directors of the Company was held today, the 4th of April, 2022 considered and approved the Stock Split (sub division of equity shares) of company’s 1 (one) equity share of face value of Rs. 10/- each in to 10 (ten) equity shares of face value of Rs. 1/- each, subject to the approval of shareholders and other statutory approvals as may be required" Garment Mantra said.
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.
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Garment Mantra has been involved in the manufacturing of the latest fashion night wears under its Hylex, Monk and Helicon brands. The textile stock is up more than 19% in a year's period, whereas the stock has declined about 29% in 2022 (year-to-date or YTD) so far.
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