Hindustan Composites surges 20% on bonus, stock split plan

The board will meet on April 10 to consider the bonus & sub division of face value of equity shares.

Hindustan Composites surged 20% to Rs 1,908 on BSE in early morning after the company announced a bonus issue and stock split plan.

“The board of directors of the company is scheduled to be held on Monday, 10th April, 2017, to consider and approve further issue of shares by way of bonus shares and to consider the sub division of face value of equity shares of the company,” Hindustan Composites said in a release.

The stock split is generally done to improve liquidity of the shares in the stock markets as also to make them affordable to the small investors.

In past one year, the stock of auto parts & equipment maker zoomed 94% as compared to 15.4% rise in the S&P BSE Sensex.

At 09:27 am; the stock was up 18% at Rs 1,874 against 0.23% rise in the benchmark index. A combined 26,581 shares changed hands on the counter on BSE and NSE so far.