BackThis smallcap IT company to consider stock split this month. Details here
Black Box board will meet on March 14, 2022 to consider & approve stock split or sub-division of equity shares
PremiumIT products and solutions provider Black Box, a wholly owned subsidiary of AGC Networks, had announced that its board will meet this month on Monday, March 14, 2022 to, inter-alia, consider and approve stock split or the sub-division of equity shares of the company.
“A meeting of the board of directors of Black Box Limited (Formerly known as AGC Networks Limited) will be held on Monday, March 14, 2022 to, inter-alia, consider and approve the sub-division of equity shares of ₹10/- each into shares of lower face value and to transact any other business with the permission of the chair," the company had announced in an exchange filing on February 23, 2022.
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.
Further, as per the company's code of conduct formulated and adopted under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 to Regulate, Monitor and Report Trading by Insiders, “the trading window for the purpose of transacting in company's shares is closed with immediate effect and shall be opened 48 hours after the outcome of the aforesaid board meeting is made public," it added.
Shares of Black Box have declined about 13% in 2022 (year-to-date or YTD) so far whereas, the smallcap IT stock has fallen 16% in a year's period.
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