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HDFC board to discuss stock split

HDFC board to discuss stock split
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First Published: Wed, Apr 28 2010. 11 21 PM IST
Updated: Wed, Apr 28 2010. 11 21 PM IST
Mumbai: Mortgage lender Housing Development Finance Corp. Ltd announced on Wednesday that its board would meet on 3 May to discuss on a possible stock split.
The face value of the HDFC scrip is now Rs10.
“We want to increase the retail and individual investor base,” vice-chairman and chief executive Keki Mistry said.
HDFC shares on the Bombay Stock Exchange lost 1.59% to close at Rs2,810.4 on Wednesday even as the bellwether Sensex lost 1.76% to close at 17,380.08 points.
“HDFC stock is largely held by institutional investors. It wants to increase its distribution and bring in retail participation in the stock,” said an analyst with a Mumbai-based brokerage who did not wish to be quoted as he is not authorized to speak with the media.
A stock split increases the number of equity shares. The price of shares normally get adjusted and the market capitalization of the company remains the same after the split.
“The board will consider a proposal to sub-divide the equity shares of Rs10 each of the corporation into such denomination as the board may deem appropriate..., subject to the approval of the shareholders,” HDFC said in a statement.
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First Published: Wed, Apr 28 2010. 11 21 PM IST