Ion Exchange board approves stock split in 1:10 ratio, shares surge 4%
- The sub-division of one equity share of the company with a face value of ₹10 each will be split into 10 equity shares of face value of Re 1 each
Ion Exchange shares zoomed nearly 4 per cent in Thursday's trade after the company's board has given its approval for stock split in the ratio of 1:10. The stock was trading 3.87 per cent higher at ₹3,495.05 per share on NSE during noon deals.
The sub-division of one equity share of the company with a face value of ₹10 each will be split into 10 equity shares of face value of Re 1 each.
"Sub-division of 1 Equity share of the Company having face value of INR 10/- each into 10 (Ten) equity shares having face value of INR 1/- each, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company;," the firm said in a filing.
Explaining the rationale behind the split, the company said, "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.
The record date for the sub-division of equity shares will be decided by the board and intimated to the stock exchanges, the company said.
Share price of Ion Exchange has gained 3.40 per cent in the last one week. The small cap stock has gained 23.34 per cent on a year-to-date basis and 95.69 per cent during the last one year.
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