Shares of Havells India, maker of electrical equipment, soared over 12 per cent post stock-split to touch one-year high in a subdued market today.
The company stock surged 12.18 per cent to Rs 279.70 - 52-week high - on the BSE as against 249.31 (adjusted basis). The stock had closed at Rs 1,246.55 (pre-split) yesterday.
Havells had announced a stock split in the ratio of 5:1, that is every share with face value Rs 5 will be split into 5 shares of Re 1 each.
The company had in a filing to the BSE on August 11 said it has fixed August 27, 2014 as record date for the purpose of sub-division of equity shares of Rs 5 per share of the company into 5 shares of Re 1 each. However, the split has taken effect today itself.
Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share.
In the broader market, the BSE benchmark Sensex was trading 45.92 points lower at 26,391.10 at 1230 hrs.
