Inspire Films Ltd, a content creation and production company, has announced plans for a stock split. Inspire Films stock split was approved by the board of directors of the company on January 21.
The company has also decided to double its authorized capital from ₹15 crore to ₹30 crore to meet the rising fund requirements driven by its expanding business.
Inspire Films share price was trading lower on Thursday. The SME stock fell as much as 5.43% to ₹27.00 apiece on the NSE. Inspire Films shares have fallen over 12% in three months and over 52% in one year.
Here’s a look at the decisions made by the board of directors of Inspire Films.
Inspire Films’ board approved a sub-division or split of existing equity share of the company from 1 (one) equity share having face value of ₹10 each, fully paid-up into 10 (ten) equity shares having face value of ₹1 each fully paid up, subject to approval of shareholders of the company.
“The face value of its equity shares will be split from ₹10 each to ₹1 each in a 1:10 ratio. Consequently, the authorized capital will increase to ₹30 crore equity shares of Re 1 each, aligning with the company’s growth strategy,” Inspire Films said in a release.
The rationale behind the Inspire Films stock split was to improve the liquidity of the company’s equity shares in the stock market and to make it affordable to small retail shareholders as also to broad base the small retail shareholder, the company said.
The expected time of completion of the stock split is approximately three months from the date of receipt of shareholders’ approval.
Inspire Films stock split record date has not been announced yet. The company said the record date shall be decided after obtaining approval of the shareholders through postal ballot and will be intimated to Stock Exchange in due course.
The record date is when a company reviews its records to identify shareholders eligible for a stock split. The ex-split date marks when the stock begins trading at the newly adjusted split price.
Inspire Films’ Board of Directors has also approved increase in Authorized share capital of the company from existing ₹15 crores to ₹30 crore, subject to approval of shareholders of the company.
“The Company has secured multiple mid and big size projects on TV and OTT and hence there may be need for long term working capital and project financing through any means and appropriate way possible. The Board has further asked the management to finalize on the business plan and explore appropriate ways to finance the same,” the company said.
It also approved the alteration of the Capital Clause (Clause V) of the Memorandum of Association of the Company (MoA) on account of increase in Authorized capital of the Company and sub-division/split of equity shares, subject to approval of shareholders of the Company.
“The increase in authorized share capital and the sub-division of equity shares reflect our commitment to strengthening the company’s financial flexibility, enabling us to take on larger projects and better manage working capital requirements. By making our shares more accessible to retail investors, we aim to improve liquidity and broaden our shareholder base, which is essential for our continued success,” said Yash Patnaik, Managing Director of Inspire Films.
At 11:35 AM, Inspire Films shares were trading 5.43% lower at ₹27.00 apiece on the NSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.