Steel Strips shares zoom on stock split announcement1 min read . Updated: 17 Aug 2021, 01:34 PM IST
- Steel Strips board to consider and approve stock split or sub-division of shares on September 3, the company announced
Steel Strips Wheels, a leader in designing & manufacturing automotive wheels, on Tuesday announced that a meeting of the board of the company is scheduled to be held on September 3 to consider and approve stock split or sub-division of shares. Steel Strips shares surged after the stock split announcement as the stock was up 5% to ₹1,665 per share on the BSE.
"Sub-division/split of equity shares of face value of ₹10 each of the company in such manner as may be determined by the board of directors,'' Steel Strips said in an exchange filing.
Steel Strips is based out of Chandigarh with manufacturing facilities at Dappar (Punjab), Oragadam (Chennai), Jamshedpur(Jharkhand), Mehsana (Gujarat) and Saraikela (Jharkhand). These plants have a combined manufacturing capacity of about 20+ million wheels per annum.
Steel Strips Wheels achieved highest ever export sales, highest ever alloy wheel sales and highest ever tractor wheel sales in July. The auto ancillary stock has given multibagger returns as it has rallied over 290% in one year and has skyrocketed 220% in 2021 (year-to-date or YTD)alone.
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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