Consumer Discretionary Stock Okays Stock Split After 200% Gain In 1 Yr: Do You Own?

OK Play India is a small-cap consumer discretionary firm engaged in manufacturing toys. The stock opened on the BSE today at Rs 169.45 apiece and rallied to an intraday high of Rs 173.90 logging in a gain of 3.60% from the previous close after the Board of Directors considered and approved stock split.

"Pursuant to the provisions of Section 61(1)(d) and all other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s) or re-enactment thereof, for the time being in force) and other enabling provisions of the Articles of Association of the Company and subject to such approvals, consents, permissions and sanctions as may be necessary from the concerned authorities or bodies, consent of the Members be and is hereby accorded to Sub-divide each of the Equity Shares of the Company having a face value of Rs. 10/- each in the Authorized, Issued, Subscribed and Paid-up Share Capital of the Company into Ten (10) Equity Shares having a face value of Rs. 1/- each fully paid, of the Company, with effect from the Record Date as may be fixed for the purpose," said OK Play India in a stock exchange filing.

"Pursuant to the Sub-division of the Equity Shares of the Company, all the issued, subscribed and paid-up Equity Shares of nominal value of Rs. 10/- each of the Company existing on the Record Date to be fixed by the Company in consultation with the Stock Exchange where the shares of the Company are listed shall stand Sub-divided into Equity Shares of nominal value of Rs. 1/- each fully paid up. Upon Sub-division of the Equity Shares as aforesaid, Ten (10) Equity Shares of the face value of Rs. 1/- each to be allotted in lieu of existing One (1) Equity Share of Rs 10/- each subject to the terms of the Memorandum and Article of Association of the Company and shall rank pari-passu in all respects with the existing fully paid-up Equity Shares of Rs. 10/- each of the Company and shall be entitled to participate in full after the Subdivided Equity Shares are allotted," said OK Play India in a regulatory filing.

"Upon the Sub-division of the Equity Shares as aforesaid, the existing Share Certificate(s) in relation to the existing Equity Shares of the face value of Rs. 10/- each held in physical form shall be deemed to have been automatically cancelled and be of no effect on and from the Record Date and the Company may without requiring the surrender of the existing Share Certificate(s) directly issue and dispatch the new Share Certificate(s) of the Company, in lieu of such existing issued Share Certificate(s) and in the case of the Equity Shares held in the dematerialized form, the number of Sub-divided Equity Shares be credited to the respective beneficiary accounts of the Shareholders with the Depository Participants, in lieu of the existing credits representing the Equity Shares of the Company before Sub-division," the company further added.

"Upon sub-division of equity shares, as aforesaid, subject to the provisions of the Companies (Share Capital and Debentures) Rules, 2014, the sub divided equity shares of nominal value of Rs. 1/- (Rupee One only) each shall be credited to the respective beneficiary account of the Members with their respective depository participants and the Company shall undertake such corporate actions as may be necessary in relation to the existing equity shares of the Company," the Board of Directors of OK Play India informed to the stock exchanges on 30th January.

"Presently the Authorised Share Capital of the Company is Rs. 40,00,00,000/- consisting 4,00,00,000 equity shares of Rs. 10/- each and its paid-up share capital is Rs. 29,01,61,650/- consisting of 2,90,04,215 equity shares of Rs. 10/- each fully paid and 23,900 equity shares of Rs.5/- paid-up. The equity shares of the Company are listed and traded on the Bombay Stock Exchange of India Limited.

In order to provide enhanced liquidity to the Company's equity shares in the stock market and to make it more affordable for small investors, it is proposed to sub-divide each equity share of face value of Rs. 10/-each into Ten equity shares of the face value of Rs. 1/- each pursuant to the provisions of Section 61(1) (d) of the Companies Act, 2013 ("the Act"), the rules made thereunder and other applicable provisions. The record date for the aforesaid sub-division of equity shares shall be fixed by the Board after the approval of the members is obtained for the proposed sub-division.

In the opinion of the Board, proposed sub-division of the equity shares is in the best interest of the Company and its investors and therefore the Board at its meeting held on 30th January 2024, approved the aforesaid sub-division subject to requisite approval of the members. There will not be any change in the amount of authorized, subscribed and paid-up share capital of the Company consequent upon sub-division of equity shares," said OK Play India in an exchange filing.