 "Britannia board to split stock in 1:2 ratio to make it more affordable")
The board of confectionary major Britannia Industries on Thursday approved share split in 1:2 ratio to make the stock more affordable for the small retail investors and increase liquidity.
The Kolkata-based company will split the shares with a face value of Rs 2 into two equity shares of Re 1 each.
The company said in a regulatory filing that the division would be subject to the approval of the members and authorities as applicable.
"There had been a significant rise in the market price of the equity shares of the Company over a period of last one year," it said.
"In order to improve the liquidity of the company's equity shares in the stock markets and to make them more affordable for the small retail investors, it is proposed to sub-divide equity shares of face value of Rs 2 each into 2 Equity Shares of the face value of Re 1 each," it added.
Britannia has authorised share capital of Rs 500 million of 250 million shares. Besides it has 120 million equity shares of Rs two each.
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Post-split, it would be "Rs 500 million divided into 500 million equity shares of the face value of Re 1 each," it said. Similarly, it would have 240 million equity shares of Re 1 each.
The company expects it to complete within "3-4 months from the date of Board approval".
Britannia Industries has also amendment its Articles of Association and all other applicable provisions regarding it.
Britannia Industries stock closed 0.43 per cent up at Rs 6,883.75 on BSE.