Housing Finance company announces stock split, bonus issue; shares hit record high
2 min read . Updated: 18 Oct 2022, 11:22 AM IST
Premium- Star Housing Finance shares rallied more than 9% to hit a record high of ₹214 apiece on the BSE
Shares of Star Housing Finance Ltd rallied more than 9% to hit a record high of ₹214 apiece on the BSE in Tuesday's trading session after the company announced the issuance of bonus equity shares in 1:1 ratio along with sub division of stock split in 1:2 ratio.
The company on Monday informed in an exchange filing that its “board at its meeting held on October 17, 2022 has approved the sub division or split of 1 (one) equity share of face value of ₹10 into 2 (two) equity shares of face value of ₹5 fully paidup." The board also approved the issue of 1 (one) bonus equity share for every 1 (one) fully paid up equity share.
The company explained the rationale of the stock split decision is "to enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors.
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. Meanwhile, bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Recently, Star Housing Finance had informed shareholders that it “has sanctioned Loan Facility of Rs. 10,00,00,000/-(Rupees Ten Crore only) to Star Housing Finance Limited under the NHB additional Refinance Facility."
Meanwhile, Star Housing Finance shares have been put under the additional surveillance measure (ASM) framework. The housing finance stock has given multibagger return of more than 113% in a year's period whereas it has rallied over 145% in 2022 (YTD) so far.
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Star Housing Finance, a BSE listed rural housing finance company operational in affordable housing finance space since more than a decade. The company is headquartered in Mumbai. Star HFL provides long term housing finance assistance to EWS/LIG homebuyers towards purchase/construction of low-cost housing units in its operational geographies.
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