Metal stock rises ahead of record date for 1:10 stock split
Premium- The metal stock is trading ex-split, a day ahead of its record date for the stock split
Shares of Steel Exchange India rose more than 3% to ₹23 apiece on the BSE in Tuesday's early trading session as the metal stock started trading ex-split, a day ahead of its record date for the stock split in the ratio of 1:10.
The company has fixed Wednesday, July 13, 2022, as the Record Date for the purpose of determining Record Date for sub-division/split of each equity share having face value of Rs. 10/- (Rupees Ten Only) each, fully paid-up into Ten (10) equity shares having face value of Rs. 1/- (Rupees One Only) each fully paid up, Steel Exchange India had informed in an exchange filing.
The board in May had approved the proposal for Sub division/Split of Equity Shares of the Company from face value of ₹10/- each into Equity Shares of face value of Re. l/- each, subject to the approval of the members of the company in General Meeting.
The company had said that the stock split decision was taken to facilitate larger shareholder base to increase liquidity in the capital market and to make shares more affordable to small shareholders.
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.
Steel Exchange India Limited (SEIL) is the flagship company of the Vizag Profiles Group. Established in 1999, SEIL is a leading manufacturer of TMT Rebars under the brand 'SIMHADRI TMT'. The company has the largest private integrated steel plant in the two Telugu States, Andhra Pradesh & Telangana. SEIL is a TMT rebar supplier for infrastructure companies/organizations in both the private sector as well as the public sector.
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