As per the announcement, each existing equity share of face value Rs 10 will be subdivided into two equity shares of face value Rs 5 each, fully paid up. The proposal, however, is subject to shareholders’ approval. The record date for the stock split will be announced once shareholder approval is secured.
BEML stated that the share split aims to comply with DIPAM guidelines on capital restructuring, encourage wider participation from retail and small investors, and enhance the liquidity of its shares in the stock market.
Post-split, the authorised share capital will stay at Rs 100 crore, restructured as 20 crore equity shares of Rs 5 each, replacing the earlier 10 crore shares of Rs 10 each.
Similarly, the issued, paid-up, and subscribed share capital will remain at Rs 41.64 crore, now comprising 8.32 crore equity shares of Rs 5 each.
BEML plans to intimate the record date for the stock split in due course after obtaining shareholders’ approval. Further, the company expects the process to be completed within 2-3 months from the date of shareholders’ approval.Also read: Early Q1 results show a slowdown in revenue and profit growth for Indian companiesAccording to the Trendlyne data, this is the first-ever stock split that is being carried out by the company.
After the update, the shares of BEML were trading 0.65% lower at Rs 4,372.70 on the NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
