OPEN APP
Home / Markets / Stock Markets /  Steel Strips announces 1:5 stock split. Details inside
Listen to this article

While announcing its earnings for the first quarter ended June 2022, Steel Strips Wheels Ltd said that its board has approved stock split in the ratio of 1:5. Shares of Steel Strips were trading more than 5% lower at 801 apiece on the BSE in Tuesday's afternoon deals.

The board at its meeting held today has approved the "Sub-division of equity shares of the company from the existing 1 (one) equity share of face value of 5/- each into 5 (Five) equity shares of face value of Re. 1/- each, subject to approval of shareholders of the company. 

The record date for the purpose of sub-division of equity shares or stock split, shall be decided after obtaining approval for sub-division from the 'shareholders at the forthcoming Annual General Meeting (AGM) and will be intimated in due course, the company added.

Explaining the rationale behind the stock split decision, Steel Strips said it is to provide enhanced liquidity to the company's shares in the stock market and to encourage the participation of small investors by making equity shares of the company affordable.

Further, the board has also approved alteration of the capital clause of memorandum of Association of the company to effect the subdivision of equity shares of the company, subject to approval of shareholders of the company.

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 would lead to increase in liquidity in the stock.

The company's net profit down was down 5.8% for Q1FY23 at 48 crore as compared to 51 crore from the year-ago quarter, whereas its revenue rose nearly 50% to 1,016 crore versus 678 crore year-on-year (YoY).

Steel Strips is a manufacturer of automotive steel wheels & alloy wheels. The auto ancillary stock is up more than 26% in a year's period whereas it is down over 6% in 2022 (YTD) so far.

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.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout