19 May , 2022 By : Kanchan Joshi
Multibagger stock: The Board of Directors of Steel Exchange India Ltd has recommended subdivision of shares into 1:10, which is subject to approval of the members of the company in General Meeting. Steel Exchange India Ltd informed about the stock split approval by the Board of Directors in its exchange communication. Steel Exchange shares are one of the multibagger stocks that Indian secondary market has produced in recent years. In last one year, Steel Exchange share price has shot up from around Rs66 to Rs145 levels, logging near 120 per cent rise in this period.
Steel Exchange India Ltd informed Indian exchanges about stock split citing, "The Board approved the proposal for Sub division/ Split of Equity Shares of the Company from face value of Rs. 10/- each into Equity Shares of face value of Re. l/- each, subject to the approval of the members of the Company in General Meeting."
The Authorized Share Capital of Steel Exchange India Ltd is Rs332,00,00,000 (Rupees Three Hundred and Thirty Two Crores only) divided into 258,00,00,000 (Two Hundred and Fifty Eight Crores only) equity shares of Re 1 (Rupee One only) each and 7,40,00,000 (Seven Crore Forty Lakhs only) Preference Shares of Rs10 (Rupees Ten only) each and the said Preference Shares may be redeemable/non-redeemable, cumulative/non-cumulative, convertible/non-convertible, participating/non-participating or otherwise at the option of the Company, in the share capital of the Company with power to increase or reduce the capital of the Company and to divide the shares in the capital for the time being into several classes and to attach thereto respectively such preferential/deferred, qualified or special rights, privileges or conditions as may be determined by or in accordance with the regulations of the company and to vary modify or abrogate any such rights, privileges or conditions in such manner as may for the time being be provided by the regulations of the Company.
Listed companies divide its shares to boost the liquidity of its stocks as lesser price of the stock is expected to attract investors who have small investment pocket. After stock sub-division, market value of the company remains unchanged but price value of its stock goes down that attracts more traders and investors leading to rise in liquidity of the stock.