Smallcap IT company has announced its first-ever stock split or subdivision of stock. The company has informed exchanges that its board has recommended a sub-division of stock. However, this is subject to approval from shareholders. The company has called an extra-ordinary general meeting on July 11, 2025 to seek shareholders' approval. The company has also proposed to raise funds by issuing allotment of warrants on a preferential basis.
Stock Split Ratio
The company, in an exchange filing, said that the board has approved the stock split in the ratio of 1:5. This means that each share having a face value of Rs 5 will be subdivided into five equity shares.
"Considered, approved, and recommended to the shareholders, an Ordinary Resolution to be passed at the forthcoming Extraordinary General Meeting (EGM), for the alteration of the share capital of the Company by way of sub-division/split of each existing equity share of the Company having a face value of ₹5/- (Rupees Five only) each, fully paid-up, into 5 (Five) equity shares having a face value of ₹1/- (Rupee One only) each, fully paid-up," the company said.
Record Date For Stock Split
The record date for the purpose of the stock split has not been announced and the company is expected to declare it after the shareholders' approval through the EGM.
Fund Raising
The board of directors of the company has also approved fund raising through the allotment of warrant. According to the information shared, the company will issue Rs 55 lakh warrants convertible into 1 equity share with a face value of Rs 5 each.
The issue price is set at Rs 126 per warrant, including the premium of Rs 121 and face value of Rs 5. The company plans to raise a total fund of up to Rs 69.3 crore, subject to approvals from regulatory and statutory authorities and the company's members at the upcoming EGM.
