With the stock markets booming, promoters are falling upon themselves to add to the liquidity in their stocks through stock splits.
A stock split typically reduces the value of the share to the extent of the split, thereby making even high priced stocks accessible to retail investors.
In the last bull run of 1999-2000, promoters of information technology companies were the first to go for stock spilts.
This time round, it is the turn of the promoters of pharmaceutical and old economy companies to queue up for stock splits.
As many as 11 companies have proposed stock splits in the last three months. The boards of these firms have proposed to split these shares to increase liquidity in the markets.
The latest in the queue for stock splits is Aurobindo Pharmaceuticals which has proposed to split its current Rs 10 paid-up stock into two scrips of Rs 5 paid-up.
Glenmark Pharmaceuticals has proposed to split its Rs 10 paid-up share into five shares of Rs 2 each. Madras Cements is planning to split its shares from Rs 100 paid-up to Rs 10 each.
The board of directors of TVS Motors will meet on October 17 to consider the sub-division of its equity shares of Rs 10 each.
Similarly, the board of directors of Pentasoft Technologies is meeting on October 31 for sub-division of equity shares.
Mirc Electronics has informed the exchanges that the board of directors has resolved to subdivide the company
