Shares of steel pipes manufacturer Hi-Tech Pipes will turn ex-split on Friday, March 17. The company has announced to split its shares in the ratio of 10-for-1 (10:1), meaning each share having a face value of Rs 10 will be sub-divided into 10 shares. The new face value of each share will be Re 1 after the split takes effect. Also, the market price of each share will also be adjusted in the split ratio.
“In continuation to our earlier communication dated March 03. 2023 with respect to Sub-Division of One (1) Equity Share of face value of Rs. 10/- each fully paid up into Ten (10) Equity Shares of Re. I/- each fully paid up w.e.f. the record date i.e. March 17," the company said.
The rationale behind the split is to enhance the liquidity in the market and widen the shareholder base. Besides, it also makes the shares more affordable to small investors. The company in the first week of March had obtained approval from its members for the sub-division of each equity share.
"This is to inform you that members of the company through postal ballot have approved sub-division of equity shares of the company from one equity share of the face value of Rs 10 each to 10 equity shares of face value of Re 1 each," the March 5 filing said.
The steel processing company on Wednesday informed exchanges about the 12-digit International Securities Identification Number (ISIN).
"The Depositories have allotted New ISIN: INE106T01025 to the company. Please be informed that the shares with reduced face value will take effect in the new ISIN," the filing read.
The small-cap company with a market cap of Rs 1.13 thousand crore reported a 28 per cent jump in net profit YoY in the December quarter at Rs 13.02 crore. Hi-Tech Pipes shares have yielded a massive return of around 72 per cent in the last one year. The stock closed at Rs 877.25 on Wednesday.