 "JSW Steel gains on stock split plan")
JSW Steel has moved higher by 2.6% at Rs 1,821 on the BSE after the company announced that the board will meet on October 27, 2016 to consider stock split from face value of Rs 10 each to lower denomination.
“A meeting of the board of directors has been convened to be held on October 27, 2016, to consider sub division of the equity shares of the company,” JSW Steel said in a regulatory filing.
The board will also consider the un-audited standalone & consolidated financial results of company for the quarter & half year ended September 30, 2016 (Q2), it added.
Stock splits are usually carried out to make the company’s stocks more affordable to retail shareholders, thereby widening the shareholder base, which in turn boosts the liquidity for these stocks.
They are usually announced when a company’s stock price reaches a certain price level, which makes it expensive for smaller shareholders to buy them. The move does not change anything fundamentally for the stock.
Thus far in 2016, the stock rallied 76% from Rs 1,033 as on December 31, 2015, as compared to 8% rise in the S&P BSE Sensex.
“A meeting of the board of directors has been convened to be held on October 27, 2016, to consider sub division of the equity shares of the company,” JSW Steel said in a regulatory filing.
The board will also consider the un-audited standalone & consolidated financial results of company for the quarter & half year ended September 30, 2016 (Q2), it added.
Stock splits are usually carried out to make the company’s stocks more affordable to retail shareholders, thereby widening the shareholder base, which in turn boosts the liquidity for these stocks.
They are usually announced when a company’s stock price reaches a certain price level, which makes it expensive for smaller shareholders to buy them. The move does not change anything fundamentally for the stock.
Thus far in 2016, the stock rallied 76% from Rs 1,033 as on December 31, 2015, as compared to 8% rise in the S&P BSE Sensex.
At 11:35 am, a combined 385,456 shares changed hands on the counter on the BSE and NSE.