Som Distilleries board approves stock split in the ratio of 5:2
Som Distilleries board approves stock split in the ratio of 5:2 on Wednesday. After the stock split, shares of the firm, with a face value of ₹5 each will be subdivided into equity shares of a face value of ₹2 each.
The board of Som Distilleries and Breweries Ltd approved a stock split in the ratio of 5:2 on Wednesday. The stock split is likely to be completed within three months from the approval of company shareholders.
According to the BSE filing, existing equity shares of the firm, with a face value of ₹5 each will be subdivided into equity shares of a face value of ₹2 each. The company is estimated to complete the stock split in three months from the approval of company shareholders.
“The Board considered and approved the SubDivision of share capital of the Company. The Board considered the Sub-Division of each of the Equity. Share Capital of face value of Rs.5/- each into equivalent Number of Equity Shares having a face value of Rs.2/- each,” said the company in its BSE filing.
The firm mentioned increasing “retail investors participation and shares liquidity” as the rationale behind the stock split. The stock split will be subject to shareholders' approval in the Extraordinary General Meeting (EGM) scheduled on April 30, 2024, according to Som Distilleries BSE filling.
Som Distilleries stock split history
The company shares closed 1.65% lower at ₹286.70 per equity share on BSE on Wednesday. The company will undergo a stock split for the second time. Before this, Som Distillery had split its stock from ₹10 to ₹5 in October 2020.
The stock split is usually done to raise the liquidity of a company's share in the stock market. The company investors owning company shares till the record date will receive the new shares in their demat accounts. The stock price will be adjusted according to the split ratio.
On Wednesday, the company's market capitalisation stood at ₹2,222.23 crore. The company shares were up 4.07% at ₹292.50 apiece on the BSE on Tuesday.
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.
- Top Gainers
- Top Losers
- 52 Week High