1:10 Stock Split: Multibagger Penny Stock Declares Share Sub-Division, Rallies Over 130% From 1-Year Low

Teamo Productions HQ has declared a share split in the ratio of a massive 1:10 for its shareholders. The company formerly known as GI Engineering Solutions is a penny stock currently trading below Rs 15 per share on BSE. Teamo is a multi-bagger and has rallied by over 130% from its 1-year low.

In a board meeting held on October 25th, Teamo Productions' board of directors approved the proposal of a stock split in the ratio of 1:10 for both equity shares and preference shares. This means that every 1 existing equity share having a face value of Rs 10 each will be subdivided into ten equity shares having a face value of Re 1 each.

Giving the rationale behind the stock split, Teamo said, "to improve the liquidity of the Company's Share and to make it more affordable for small investors and also to a broad base of small investors."

The company expects to complete the stock split corporate action tentatively within 3 months from the date of the Board's approval.

Typically, listed companies declare a stock split of already owned shares into much smaller shares. This is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, the number of shares held rises in the investors' portfolio of that specific stock.

However, while Teamo declared a stock split, the company's board of directors have postponed the announcement of September quarter results for FY24. Also, the company has deferred to evaluate necessary strategies to be adopted for future growth and expansion of the Company business, form/rejig leadership team, board committee(s), appoint/engage professionals, industry experts, and other matters incidental thereto.

Last month, the company changed its name from GI Engineering Solutions Limited to Teamo Productions HQ Limited on September 26, 2023, after the company's shareholders' approval was obtained using passing a Special Resolution through the recently concluded Postal Ballot process.

GI Engineering is conventionally an Engineering Design Company Specializing in Civil Engineering Activities and Ancillary Services. G.I. Engineering subsequently ventured into a wide range of Civil Engineering Services including Land Planning, Land Surveying Landscape Architectural Services Etc.

On BSE, Teamo shares traded at Rs 10.95 apiece, down by 1.17%. On the previous day, the stock stood at Rs 11.08 apiece. The stock has rallied by 132% against its 52-week low of Rs 4.78 apiece if compared to Thursday's price level.

The stock's 52-week high is at Rs 38.28 apiece.