12 Oct , 2021 By : Kanchan Joshi
Ball and roller bearing manufacturing company Schaeffler India in an exchange filing on Monday informed that the board of the company will meet on October 28 to consider the proposal of sub-division of equity shares of the company (stock split).
“..A meeting of Board of Directors of the Company is scheduled to be held on Thursday, the 28th day of October 2021 inter alia, to consider and approve the Unaudited Financial Results of the Company for the quarter ended September 30, 2021, and consider sub-division of equity shares of the Company in such manner as may be determined by the Board of Directors," Schaeffler India stated in the release.
Shares of Schaeffler India surged over 8% to Rs7,798 per share on the BSE in Tuesday's early deals on the back of stock split news.
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.
“Further as per circular issued by BSE Limited and National Stock Exchange of India, the exchanges are hereby informed that the ‘Trading Window’ of the company had already been closed with effect from October 1, 2021 and shall remain closed upto October 30, 2021 (both days inclusive) for the above purpose, in compliance with the company’s code on Prohibition of insider trading," Schaeffler India added.
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