Steel pipes maker Hi-Tech Pipes has announced that the board has approved the sub-division/split of existing equity shares. The current face value of each share of the company is Rs 10. According to an exchange filing, the shares will be subdivided in the ratio of 10:1. It means that one share will be subdivided into 10 shares.
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.
The face value of each share will be split in the ratio of 10:1. Once the split comes into effect, the face value of each share of the company will be Re 1. The market price of each share will also be adjusted in the same ratio. The current market price of each share of Hi-Tech Pipes is Rs 910.60 on NSE, as per Friday's closing. After the split, as per Friday's closing, the price will come down to Rs 91.06.
"The Board of Directors of Hi-Tech Pipes Ltd in its meeting held on Saturday, January 28, has considered and approved the sub-division/split of existing equity share of the Company from one equity share having face value of Rs 10 each, fully paid-up into Ten equity shares having face value of Rs 1 each fully paid-up," Hi-Tech Pipes said in the filing.
The split is subject to the approval of shareholders and other competent authorities, it added. The Record Date for the purpose of sub-division/ split will be intimated in due course, the filing added.
In another related development, Hi-Tech Pipes it the third quarter reported over 28 per cent jump in its consolidated net profit to Rs 13.02 crore. The company had clocked Rs 10.16 crore during the same period of the preceding fiscal. Its total income jumped to Rs 569.80 crore from Rs 440.03 crore in the year-ago quarter while expenses grew to Rs 552.40 crore in the quarter under review from Rs 426.18 crore a year ago.
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