Steel Exchange India shares rose over 3% The metal stock started trading ex-split a day before its record date for a stock split in the ratio 1:10 as of 23 pps on the BSE in early trading session on Tuesday.
The Company has fixed Wednesday, July 13, 2022, as the record date for the purpose of prescribing the record date for sub-division/split of each equity share having a face value of Rs. 10/- (Rupees ten only) each, fully paid-up in ten (10) equity shares of face value of Rs. 1/- (Rupees One only) each fully paid, Steel Exchange India had informed in an exchange filing.
The Board had in May approved the proposal to split the sub-division/equity shares of the company from the face value of Rs. 10/- each in equity shares of face value of Rs. L/- each, subject to the approval of the members of the company at the general meeting.
The company had said that the stock split decision was taken to facilitate a larger shareholder base to increase liquidity in the capital market and to make the shares more affordable for smallholders.
a stock split Increases the number of outstanding shares by issuing more shares to existing shareholders. A stock split reduces the market value of individual shares, however, the market capitalization of the company does not change.
A company engages in a stock split decision to make its stock more affordable if its price level is too high, which will increase the liquidity in the stock.
Steel Exchange India Limited (SEIL) is the flagship company of Vizag Profiles Group. Established in 1999, SEIL is a leading manufacturer of TMT Rebars under the brand ‘SIMHADRI TMT’. The company has the largest private integrated steel plants in two Telugu states, Andhra Pradesh and Telangana. SEIL is a TMT rebar supplier to infrastructure companies/organizations both in the private sector as well as in the public sector.