 "Lux Innerwear")
Innerwear manufacturer Lux Industries has announced a stock split of the face value of Rs 10 each into Rs 2 each per equity share in a 5-for-1 stock split, in compliance with applicable provisions of the Companies Act, and other applicable provisions.
According to the company's chairman Ashok Kumar Todi, the stock split, effective June 6 this year, will reduce per unit price and increase deliverable quantity, thereby enhancing buying capacity, coupled with liquidity. It will also strengthen share price and increase volumes, both in number as well as value. However, this will not affect the rights of the shareholders or taxability.
"This year, we have witnessed a turnover of Rs 940.86 crore which ensured a topline growth by 3.51%. With this stock split, we are looking at renewed investor sentiment and wish to achieve greater liquidity for the stock. We believe this is the right time to give more investors the opportunity to be a part of the success story,” he said.
Upon completion of the stock split, Lux Industries will have 252.530 lakh shares of common stock outstanding of Rs 2 each, against the existing 50.506 lakh shares of Rs 10 each.
During the span of 52 weeks, the stock had hit a record high of Rs 4,148 on December 17 last year on the NSE.
The company’s current market capitalisation stands at Rs 1,721.75 crore and it manufactures more than 100 products across 12 major brands.
