 "Avanti Feeds gains on stock split plans")
Avanti Feeds has moved higher by 9% to Rs 2,720 on the BSE after the company scheduled a board meeting on August 12, 2015 to consider a stock split proposal.
“A meeting of the board of directors of the company will be held on September 12, 2015, to consider sub division of equity shares,” Avanti Feeds said in a BSE filing.
The board will also consider the transfer of shrimp processing business to Avanti Frozen Foods Private Limited, a wholly owned subsidiary of Avanti Feeds, it added.
Stock split or sub-division of equity shares is meant to infuse liquidity and make shares affordable for retail investors who could not invest earlier due to the high stock price.
A share split itself does not increase the economic value of a company, but it can increase the shareholder base — making it easier for both retail and institutional investors to buy stocks.
Thus far in 2015, the stock has outperformed the market by gaining 72% from Rs 1,583 compared to 6% fall in the S&P BSE Sensex. It touched a record high of Rs 3,245 on August 18, 2015.
At 03:20 PM, the stock was up 7% at Rs 2,685 on the BSE.
“A meeting of the board of directors of the company will be held on September 12, 2015, to consider sub division of equity shares,” Avanti Feeds said in a BSE filing.
The board will also consider the transfer of shrimp processing business to Avanti Frozen Foods Private Limited, a wholly owned subsidiary of Avanti Feeds, it added.
Stock split or sub-division of equity shares is meant to infuse liquidity and make shares affordable for retail investors who could not invest earlier due to the high stock price.
A share split itself does not increase the economic value of a company, but it can increase the shareholder base — making it easier for both retail and institutional investors to buy stocks.
Thus far in 2015, the stock has outperformed the market by gaining 72% from Rs 1,583 compared to 6% fall in the S&P BSE Sensex. It touched a record high of Rs 3,245 on August 18, 2015.
At 03:20 PM, the stock was up 7% at Rs 2,685 on the BSE.