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Shares of Avantel surged 17 per cent to hit a record high of Rs 196 on the BSE in Monday’s intra-day trade, after the stock turned ex-split in the ratio of 1:5, that is, one share of the company, which has a face value of Rs 10 per share sub-divided into five company shares with a face value of Rs 2 per share.
The board of directors of the company fixed Wednesday, August 16, 2023 as the "Record Date" to determine entitlement of equity shareholders for sub-division or split of existing equity shares of the company from 1 equity share having face value of Rs 10 each, into 5 equity shares having face value of Rs 2.
Avantel said that the rationale behind the split is to enhance liquidity in the capital market, widen shareholder base, and make shares more affordable to small investors.
In the past three months, the stock price of the company appreciated 95 per cent, as compared to 5 per cent rise in the S&P BSE Sensex. Currently, the stock is trading in the ‘X’ segment, which are only listed/traded at BSE.
Avantel is a company engaged in manufacturing of wireless front-end, Satellite Communication, Embedded systems, Signal Processing, Network management and Software development and rendering related customer support services.
For fiscal year 2023-24 (FY24), the Union Budget envisaged a total outlay of $550 billion (Rs 45.03 trillion). The Ministry of Defence has been allocated a total Budget of $72 billion (Rs 5.93 trillion), which is 13.18 per cent of the total budget.
The total Defence Budget represents an enhancement of $8.35 billion (Rs 68,371.49 crore), which is 13 per cent more than the Budget for 2022-23.
Avantel mainly offers fully indigenous solutions and caters to emerging needs of MoD under the “Atmanirbhartha” - self-reliance mission of the Indian government. The sustained increase of capital outlays in defence budget indicates positive outlook from customer side for new inductions / new purchases by defence forces and offers sufficient market space for the company to forge ahead and expand its footprint in the strategic sector.
Apart from positives of defence budget allocations, the recent initiatives launched by Indian National Space Promotion and Authorization Center (IN-SPACe) and Indian Space Association (ISpA) also has garnered great interest in NGEs (Non-Government Entities) participation in the Indian Space technology domain, said the management.
"These Institutions have been advocating private industry participation in the Space Technologies sector and tremendous opportunities are in the offing. The recent announcement of Union Cabinet approval of the “Indian Space Policy 2023” is a great step in the direction and the company expects to utilise emerging opportunities to enhance its SATCOM and Space Technology portfolio," the management added.
