Servotech Power Systems shares have turned ex-split and dividend. The shares of the Delhi-based small-cap company hit the upper circuit during Friday's trading session.
The board of Servotech had earlier announced to split shares in the ratio of 5:1 and pay an interim dividend of Rs 0.20 per equity share. It means that the board had approved subdividing each share into 5.
According to an exchange filing by the company, the new face value after the split is now Rs 2.
The rationale behind the split is to enhance the liquidity in the market, to widen the shareholder base and to make the shares more affordable to small investors.
When a company announces to split its shares, the market price is adjusted in the same ratio. The stock had settled at Rs 220 apiece on Thursday. On Friday, the stock opened at Rs 41.85 apiece on NSE after the adjusted split. The counter gained more than 5 per cent to finish at Rs 46.25 apiece on NSE on Friday.
Servotech Power Systems shares also traded ex-dividend date on Friday. The dividend amount will be credited directly into the bank accounts of eligible shareholders on/or around Saturday, February 18, according to the filing.
Servotech Power Systems shares have delivered a multi-bagger return of 123 per cent in the past year and 817 per cent in 5 years.
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