NSE-listed Servotech Power Systems has announced the sub-division of its equity shares, according to an exchange filing. The current face value of each share of the leading manufacturer of LED lights, solar panels and UVC disinfection products is Rs 2. As per the filing, the face value of each share will be sub-divided from Rs 2 to Re 1.
The decision to split the face value of shares was taken at a board meeting of the Delhi-based company on Thursday.
"The sub-division (split) of Equity Share of the Company having a face value of Rs. 2/- (Rupees Two only) each (fully paid-up) into Two (2) Equity Shares of face value of Rs. 1/- (Rupees One only) each (fully Paidup)," the company said in a filing.
The sub-division of equity shares is subject to shareholders' approval at the next scheduled annual general meeting.
The rationale behind the split of equity shares is to enhance the liquidity of the company’s equity shares and to encourage wider participation in the market.
Post sub-division, the total number of equity shares of the company in the secondary market would increase to 22 crore, the filing said.
Notably, this is the second stock split announced by the company within a year. Earlier, the company had announced sub-division of its shares in the ratio 5:1 which means each share bearing a face value of Rs 10 each was sub-divided into Rs 2 each. The sub-division had taken place in February this year.
Servotech Power Systems is a smallcap company with a market capitalization of about Rs 942 crore. It has has delivered a multibagger return of 197 per cent in the past 6 months. In the last one year, it has rallied more than 550 per cent. The company is also involved in manufacturing electric vehicle chargers. It is also known for manufacturing inverters and UPS.