Britannia Industries's board approved share split in 1:2 ratio on Thursday to make the stock more affordable for the small retail investors and increase liquidity. The Kolkata-based company will split the shares with a face value of Rs 2 into two equity shares of Re 1 each.
In an exchange regulatory filing, the company said that the division would be subject to the approval of the members and authorities as applicable. "There had been a significant rise in the market price of the equity shares of the Company over a period of last one year," Britannia said. "In order to improve the liquidity of the Company's Equity Shares in the Stock Markets and to make them more affordable for the small retail investors, it is proposed to sub-divide Equity Shares of face value of Rs 2 each into 2 Equity Shares of the face value of Re 1 each," it added.
Britannia Industries shares were trading at Rs 6,844 on BSE (Bombay Stock Exchange), 0.80 percent higher than the previous close at around 9.55 am on Friday.
The confectionary major has an authorized share capital of 25 crore shares worth Rs 50 crore. Besides this, it has 12.01 crore equity shares of Rs 2 each. Post the split, it would be "Rs 50 crore divided into 50 crore equity shares of the face value of Re 1 each," it said. Similarly, it would have 24.03 crore equity shares of Re 1 each.
The company expects it to complete within "3-4 months from the date of Board approval". Britannia Industries has also amended its Articles of Association and all other applicable provisions regarding it.