Shares of IRB Infra on Tuesday climbed more than 3 per cent in early morning deals on the back of the announcement of the record date for the sub-division of equity shares. The counter quoted Rs 277 apiece on NSE, up 3.50 per cent from the previous close of 267.35.
The board of the highway infrastructure developer had on Monday announced the record date for the split. As per the filing, the record date for determining the eligibility of shareholders for the split is February 22.
ALSO READ: How Narendra Modi changed the very definition of Union Budget
The company had last month approved the sub-division of shares in a ratio of 10:1. It means that IRB Infra will split its one equity share into 10 equity shares.
Once the split takes effect, the existing face value of each share will be Re 1 and also the market price will be adjusted in the same ratio.
"The board considered the proposal for sub-division of 1 equity share of the Company having a face value of Rs 10 each into 10 equity shares having face value of Rs 1 each, subject to regulatory/statutory approvals," the company said.
The rationale behind the split is to enhance the liquidity in the market, to widen the shareholder base and make the shares more affordable to small investors.
EXCLUSIVE | Budget is serious document and not for excitement, says FM Nirmala Sitharaman
The stock split announcement comes at a time when the highway infrastructure developer company completes 25 years of incorporation. IRB Infra is the largest integrated private toll roads and highways infrastructure developer in India.
