Metal stock trades ex-split, shares hit upper circuit
Premium- The company has fixed Friday, 26th August 2022 as the record date for its 5:1 stock split
Shares of Rama Steel Tubes Ltd surged to hit the upper circuit level of 5% to ₹115 apiece on the BSE in Thursday's early trading session, as the metal stock started ex-split, a day ahead of its record date for the sub-division of equity shares in the ratio of 5:1.
Earlier this month, the company informed that it has fixed Friday, 26th August 2022 as the "Record date" for determining eligibility of members for the purpose of subdivision of the equity shares of the company from Face Value of Rs. 5/- each fully paid-up to Face Value of Re. 1/- each fully paid-up.
“Upon sub-division of face of value of each share from Rs. 5/- to Re. 1/-, all fractions resulting from the sub-division of equity shares shall be consolidated into whole equity shares and the same will be disposed of at the market price and the net proceeds (less expenses, if any) will be distributed proportionately, as far as practicable, to the members concerned," it added in the exchange filing.
In June, the board of directors of the company had recommended the proposal of stock split or sub-division of equity share of face value of Rs. 5 /- each fully paid up into Equity Shares of face value of Re. 1/- each fully paid up at the Record Date to be determined as authorized by the Board of Directors, subsequent to the approval of the shareholders through Postal Ballot.
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.
Rama Steel Tubes Ltd. is a small-cap company that operates in the ferrous metals industry. The company is one of India's top producers of rigid PVC & G.I. pipes and steel pipes and tubes.
MINT PREMIUM See All
The firm has a global presence in countries such as the United Kingdom, UAE, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, Germany, USA, South Africa, Zambia, and Malta, among others,
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less