Canara Bank sponsored NBFC Can Fin Homes Ltd today said it will split its equity shares in 1:5 ratio next month to make it affordable for retail investors.
The company has fixed October 13 as the record date for the sub-division/stock split of its shares.
Shares of the company today closed 4.68 per cent down at Rs 2,665.45 on BSE.
Market price of the equity shares has risen significantly over a period of time and hit an all-time high of Rs 3,330 (NSE) per share on June 22, 2017.
High price of the equity shares has kept small retail investors away from trading in company's equity shares, Can Fin Homes said in a regulatory filing.
Besides, there is a request from shareholders for stock split in recent years, it added.
"In order to improve the liquidity of the company's equity shares in the stock market with higher floating stock in absolute number and to encourage the participation of small investors by making the equity shares of the company affordable," it said.
The board of directors has approved the proposal of sub- division of equity shares of the company from its present value of Rs 10 to Rs 2, it added.
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