Good news for Servotech Power shareholders as board approves sub-division of equity shares
NSE-listed Servotech Power Systems has announced sub-division of its equity shares, according to an exchange filing. The current face value of each share of the leading manufacturer of LED lights, solar panels and UVC disinfection products is Rs 2. According to the filing, the face value of each share will be sub-divided from Rs 2 to Rs 1.
The decision to distribute the face value of the shares was taken in the board meeting of the company in Delhi on Thursday.
“Subdivision (split) of equity shares of the company of face value 2/- (Rupees two only) each (fully paid) into two (2) equity shares of face value Rs 1/- (Rupees one only) ) each (paid in full),” the company said in a filing.
The subdivision of equity shares is subject to the approval of the shareholders at the next scheduled annual general meeting.
The rationale behind the allotment of equity shares is to increase the liquidity of the company’s equity shares and encourage wider participation in the market.
After the subdivision, the total number of equity shares of the company in the secondary market will increase to 22 crore, the filing said.
It may be mentioned that this is the second stock split announced by the company within a year. Earlier, the company had announced a sub-division of its shares in the ratio of 5:1, which meant that each share with a face value of Rs 10 was sub-divided into Rs 2. The subdivision was held in February this year.
Servotech Power Systems is a smallcap company with a market capitalization of around Rs 942 crore. It has delivered a multibagger return of 197 percent in the last 6 months. It has increased by more than 550 percent in the last one year. The company is also involved in the manufacture of electric vehicle chargers. It is also known for manufacturing inverters and UPS.
Also Read | Shares of LIC rose nearly 2 percent after the fourth quarter earnings
Also Read | Fuel stations in Punjab say that after the RBI’s move, 90% of their cash is in Rs 2,000 notes.
Latest business news
