HDFC Bank today said its board had approved a 5-for-1 stock split to increase retail participation in the bank's shares. One equity share of the bank with a nominal value of Rs 10 would now be converted into five equity shares of Rs 2 each, the bank said in a statement.
We have traditionally seen as share prices rise, the proportion of retail holding comes down, since shares become expensive for retail investors. In our case, the retail holding has come down to less than 10 per cent,” said Executive Director, Paresh Sukthankar. “While we don't have a target in mind, we would love to see retail holding in our stock go up,” he said.
HDFC Bank shares closed at Rs 2,310.15 on the National Stock Exchange, down 2.24 per cent from the previous close.