Shares of Dixon Technologies gained over 14% in intra-day trade today to hit a new high of Rs. 4588 per share on the BSE. On the NSE, the counter hit a fresh high of Rs. 4457.7. This is after the scrip of Dixon Technologies turned ex-split today (March 18, 2021) in the ratio of 1:5 and carries a new face value of Rs. 2 from the earlier Rs. 10.
The stock split was given approval in a board meet held on February 2. And the record date for the split has been fixed as March 19.
The reason given by the company for the split is to encourage wider retail participation in the counter and to increase the liquidity of the shares in the secondary market.
"The Board of Dixon Technologies (India) at its meeting held on 02 February 2021 has approved stock split of existing I (one) Equity Share of face value of Rs. 10/- each fully paid up into 5 (Five) Equity Shares of Rs. 2/- each full y paid up, subject to shareholders' approval," said the company in a BSE filing.
Through the stock split, the company would increase the number of outstanding shares by issuing more shares to current shareholders of the company.
In the Q3 period of FY21, the company logged the most profits ever, with net profit gaining 134 percent y-o-y to Rs. 62 crore owing to robust expansion in the mobile phone and consumer electronics business.