Multibagger Stock Split: Hardwyn India shares gained 5 per cent today after it informed exchanges that the board will consider and approve sub-division of equity shares in the next scheduled meet. The face value of each share of the aluminium industry company is Rs 10.
The stock opened 1 per cent higher and continued the uptrend to trade in green at 10:30 AM in a weak market. It quoted at Rs 265.80, up more than 4.50 per cent.
According to a regulatory filing dated March 11, the Board of Directors is scheduled to meet on Wednesday, April 26, 2023, inter-alia to discuss and approve Split of Equity shares of the company.
The split, if approved by the board, will be subject to the shareholders approval. The rationale behind the split is to increase the liquidity and widen the shareholder base. It also makes the shares more affordable to small investors.
When a company announces to split its shares, the total number of outstanding shares in the market increases and market price is adjusted in the ratio of split.
The split announcement comes within a year of bonus issue. The company in July last year declared 1:2 bonus for its shareholders. It means that each shareholder were given 1 bonus share for every two shares held by them.
Hardwyn India is an architectural hardware maker. The smallcap category stock has yielded multibagger returns to its investors. It is among the list of stocks that turned out to be a multibagger in FY23. The stock has rallied more than 200 per cent in the last one year.
