Metal stock advances toward record 1:10 Stock Split

Tuesday’s early trading session saw shares of Steel Exchange India rise more than 3 percent to 23 per share on the BSE as the metal company began trading ex-split, one day before its record date for the stock split in the ratio of 1:10.

According to a filing with Steel Exchange India, the company has set Wednesday, July 13, 2022, as the Record Date for determining the Record Date for the sub-division or splitting of each equity share with a face value of Rs. 10/- (Rupees Ten Only) into ten (10) equity shares with a face value of Rs. 1/- (Rupees One Only) each fully paid-up.

The proposal for the subdividing/splitting of the company’s equity shares, which now have a face value of 10 cents each, into equity shares with a face value of Rs. 1 cent each, was approved by the board in May.

The stock split decision, according to the corporation, was made to enable a bigger shareholder base, boost capital market liquidity, and make shares more accessible to small shareholders.

By issuing extra shares to the existing shareholders, a stock split raises the number of shares that are outstanding. Although a stock split lowers the share price on an individual basis, it has no impact on the company’s market capitalization.

If a company’s stock price levels are extremely high, it may decide to split its shares, which would boost the stock’s liquidity and make it more accessible to investors.

The Vizag Profiles Group’s Steel Exchange India Limited (SEIL) is its flagship business. Under the brand name “SIMHADRI TMT,” SEIL, a pioneer in the TMT rebar industry, was founded in 1999. In the two Telugu States of Andhra Pradesh and Telangana, the firm operates the largest privately owned integrated steel factory. For infrastructure businesses and organisations in the public and commercial sectors, SEIL is a provider of TMT rebar.