Shares of steel pipe maker Hi-Tech Pipes will ex-split on Friday, March 17. The company has announced a split of its shares in the ratio of 10-for-1 (10:1), which means that each share has a face value of Rs. 10 will be sub-divided into 10 shares of Rs. After the effect of the split, the new face value of each share will be Re 1. Also, the market value of each share will also be adjusted in the split ratio.
“In continuation of our earlier communication dated March 03, 2023 regarding sub-division of one (1) Equity Share of face value of Rs. 10/- each fully paid-up in Ten (10) Equity Shares of Re. I/- each has been fully paid by the record date i.e. March 17,” the company said.
The rationale behind the split is to increase the liquidity in the market and widen the shareholder base. Furthermore, it also makes the shares more affordable for small investors. The company had obtained approval from its members for sub-division of each equity share in the first week of March.
“You are informed that the members of the Company through postal ballot have approved the sub-division of the Equity Shares of the Company from one Equity Share of face value of Rs.10 to 10 Equity Shares of face value of Re.1 each ,’ the March 5 filing said.
The steel processing company on Wednesday informed the exchanges about the 12-digit International Securities Identification Number (ISIN).
“The Depository has allotted new ISIN: INE106T01025 to the company. Please be informed that the shares with lower face value will be effected in the new ISIN,” the filing read.
The small-cap company with a market cap of Rs 1.13 thousand crore reported a 28 percent jump in net profit to Rs 13.02 crore in the December quarter. Shares of Hi-Tech Pipes have given tremendous returns of around 72 per cent in the last one year. The stock had closed at Rs 877.25 on Wednesday.