Stock Split: Civil works and engineering services provider Atal Realtech has announced that it could soon approve the sub-division of the face value of its equity shares, or split. The sub-division or split is a kind of corporate event to reward the investors. In a split, the face value of equity shares is subdivided, and as a result, the total number of outstanding shares increases.
According to an exchange filing by the company, pursuant to Regulation 29(3) of the Securities Exchange Board of India (SEBI) Regulations 2015, a meeting of the board of directors is scheduled to be held on Thursday (September 21) to consider and approve the sub-division or stock split of equity shares.
The rationale behind the split is to enhance liquidity in the stock and widen the shareholder base. It also makes the shares more affordable for small investors and traders.
When a listed company announces that it will split its shares, the total number of outstanding shares in the market increases, and the market price is adjusted in proportion to the split.
The small-cap stock has a market cap of Rs 143 crore, according to information available on the BSE website. It is engaged in civil construction and government contracting. It also provides integrated contracting and subcontracting services for civil and industrial construction.
Meanwhile, a Motilal Oswal report said that demand in the real estate sector has remained steady amid a rising share of mid-income housing.
Contrary to historical trends, the share of the affordable segment has now been eclipsed by the mid-income segment, driven by consistent growth in demand for larger homes since the pandemic and improved affordability, the report said.
As industry demand remains steady, several realty players continue to grow at a faster pace, aided by consolidation, forays into new markets, macroeconomic tailwinds, and an increased preference for quality services.