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Business News/ Markets / Stock Markets/  Steel Strips board approves 1:2 stock split
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Steel Strips board approves 1:2 stock split

The company said that the record date for the purpose of sub-diviiion of equity shares shall be decided after obtaining approval for sub-division from the shareholders

Steel Strip shares were trading 2% lowerPremium
Steel Strip shares were trading 2% lower

Steel Strips Wheels, a leader in designing & manufacturing automotive wheels, on Friday announced that its board in a meeting held today has approved the stock split (sub-division of equity shares) in the ratio of 1:2 i.e., from the existing 1 (one) equity share into 2 (Two) equity shares.

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

The company said that the record date for the purpose of sub-diviiion of equity shares shall be decided after obtaining approval for sub-division from the shareholders at the ensuing Annual General Meeting (AGM) and will be intimated in due course.

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.

The auto ancillary stock was trading nearly 2% lower to 1,856.9 per share on the BSE in Friday's afternoon deals, post the stock split announcement. Last month, Steel Strips had announced that a meeting of the board of the company is scheduled to be held on September 3 to consider and approve stock split or sub-division of shares. 

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Published: 03 Sep 2021, 01:32 PM IST
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