Salasar Techno Engineering Ltd. up by 4% in a neutral market on stock split plan; zooms 15% in 1 monthApril 20, 2022
A stock split is generally undertaken to make the stock more affordable to small retail investors and increase liquidity
New Delhi (India), April 20: Shares of Salasar Techno Engineering Ltd. were up 4 per cent at Rs 269 on the BSE in Tuesday’s intra-day trade, in an otherwise neutral and volatile market, the stock has hit the high of Rs. 279 in its early trade on Tuesday, after the company said the board will meet on April 30, 2022 to consider stock split proposal.
At 10:00 am, the stock was up 5 per cent at Rs 273 as compared to 21 points decline in the S&P BSE Sensex.
“A meeting of the board of directors of the Company will be held on April, 30, 2022, to consider a proposal for sub-division of the equity shares of the Company having a face value of Rs 10 each, in such manner as may be determined by the board of directors, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company,” Salasar Techno Engineering Ltd said in an exchange filing.
Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors, and to increase the liquidity of trading in its shares. Stock Split makes the stock more affordable to small retail investors and increase liquidity. It refers to splitting the face value of shares, in which the number of shares of the company increases but the m-cap stays the same. Existing shares split, but the underlying value remains unchanged. As the number of shares increases, the price per share goes down.
Salasar Techno Engineering Ltd has outperformed the market in the recent past with wide margin. In the past one month, the stock has rallied 15 per cent as compared to a 1.38 percent decline in the S&P BSE Sensex. Moreover, over the past one year, it has surged 19 per cent as against 17.88 percent rise in the benchmark index. It had hit a record high of Rs 370.75 on July 13, 2021.