Apollo Micro Systems shares were are locked on the upper circuit of 5 per cent at Rs 301.25 after the board fixed the record date for the sub-division of equity shares. The aerospace and defence company in an exchange filing informed that its equity shares will split in the ratio of 10:1. It means that each equity shares with a face value of Rs 10 will be sub-divided into 10 shares. The new face value after split would be Re 1.
The board at a meeting last week fixed the record date for the split. A record date is a day that allows a listed company to determine the eligibility of shareholders for corporate actions.
"The Board of Directors of the Company has passed the necessary resolution through Circular Resolution, on 6th April, 2023 and has fixed the record date on Thursday, 4th May, 2023 for the purpose of sub-division of 1 equity share of Rs. 10/- each into 10 equity shares of Re. 1/- each fully paid up, pursuant to the shareholders," the company informed exchanges.
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It means that Apollo Micro Systems shares\holders having the shares of the company in their Demat account on the record date will be eligible for the split.
Once the split takes effect, the market price of the shares will come down in the ratio of the split. The current market price of each share of Apollo Micro Systems is Rs 300. It means that the market price of each will become Rs 30 after the split.
The rationale behind the split is to enhance the liquidity in the market, widen the shareholder base and make the shares more affordable to small investors.
Apollo Micro Systems is a Hyderabad-based company that caters primarily to defence and aerospace sectors. The smallcap company's shares have delivered a multi-bagger return in the last one year. The scrip has nearly doubled investors' money, zooming a whopping 98 per cent
