Hi-Tech Pipes, a leading steel processing company, is actively considering splitting its existing equity shares. According to an exchange filing by the company, the board of the company will take up a proposal to split the company's shares when it meets later this week.
The company said that a meeting of the board is scheduled to take place on January 28 wherein the proposal to split the shares will be taken into consideration and approved.
A stock split is one of the corporate actions by companies. The rationale behind the split is to enhance the liquidity in the market and widen the shareholder base. It also makes the shares of the company more affordable to small investors and traders as the share price is adjusted in the ratio of the split. When a company decides to split its shares, the face value is also adjusted in the same ratio.
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The current face value of each share of Hi-Tech Pipes is Rs 10.
"Proposal of Sub-Division/ Split of the equity shares of the company, having a face value of Rs. 10 each, in such a manner as the Board may determine...," Hi-Tech Pipes said in the filing on Tuesday.
Hi-Tech Pipes said that its board will also consider and approve the un-audited financial results for the October-December quarter of the current financial year.
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Meanwhile, shares of the small-cap company finished lower by 0.41 at Rs 858 apiece during Tuesday's trade.
In another related development, Hi-Tech Pipes has announced that it would set up a manufacturing facility of steel tubes and pipes and flat steel processing in Uttar Pradesh at Rs 510 crore.