Leading Fast-Moving Consumer Goods (FMCG) major BCL Industries has approved the sub-division of equity shares. According to an exchange filing by the company, the board has recommended the sub-division of equity shares of the company.
A sub-division or split is a corporate action that is done to make the stock affordable and widen shareholders' base. It results in increasing the total number of outstanding shares in the market.
BCL Industries is a constituent of S&P BSE SmallCap. The company is a leading player in the edible oil sector.
The FMCG firm has declared stock split in a 10:1 ratio, which means each share of the company with a face value of Rs 10 each is sub-divided into 10 equity shares. One the split takes effect, the current face value of the stock will be Re 1.
"Approved the splitting of the face value of the shares from Rs 10 to Rs 1 per share, subject to approval of the shareholders and other statutory approvals," the company said in the filing.
The record date for the proposed stock split will be intimated in due course.
Brokerage firm InCred Equties has said that the firm will benefit from the commencement of its new production plant in West Bengal and that the ethanol plant, with a capacity of 200 Kilo Litres per day (KLPD) in Punjab, is just one quarter away.
While initiating ADD rating, the brokerage has set a price target of Rs 790 in bull-case scenario. The bear-case scenario target price is Rs 656.
The FMCG company is a part of the Mittal Group engaged in diversified businesses. It manufactures and markets various edible oils in the domestic market. Notably, the FMCG sector is one of the fastest growing sectors in India in the recent times amid rising demand, improving supply chain and macro conditions.