1:2 Stock Split: 1 Rs 5,800 Electric Stock To Be Sub-divided Into 2 Shares Soon; Turns Rs 1 Lakh To Rs 6 Lakh

Leading electrical engineering company, Bharat Bijlee is coming up with its 1:2 stock split. That means, 1 share price of Bharat Bijlee which is trading at a little over Rs 5,800 will be sub-dividend into two shares. The company fixed the record date to determine eligible shareholders. Bharat Bijlee is a multi-bagger with over 500% returns in 5 years.

Bharat Bijlee Share Price:

At the time of writing, Bharat Bijlee's share price traded at Rs 5,817 apiece, up by Rs 20.35 or 0.35%. The small-cap's market valuation is at Rs 3,277.90 crore. The stock touched an intraday high of Rs 5,890 apiece, which is higher by a whopping 146% from its 52-week high of Rs 2,395.40 apiece.

The stock's 52-week high is Rs 6,080 apiece. In a year, the stock gained by 111%, while in five years, the stock has rallied by 503%. On February 15, 2019, the stock was a little over Rs 963 levels.

Using Axis Direct's calculator, if an investor had invested Rs 1 lakh in Bharat Bijlee five years ago, now their portfolio has risen to Rs 6,00,712.

Bharat Bijlee's Stock Split:

The company on February 14 approved a stock split of the existing 1 equity share having a face value of Rs 10 each fully paid up, into 2 (Two) Equity Shares of a face value of Rs 5/- each fully paid up, subject to such regulatory/statutory approvals as may be required and the approval of Members of the Company, through Postal Ballot.

This would mean a stock split ratio of 1:2.

The Record Date for the Sub-division / Split of Equity Shares shall be decided by the Board and will be intimated to the Stock Exchanges.

The reason behind Bharat Bijlee's stock split is that the company plans to facilitate a larger shareholder base to aid liquidity in the capital market and make the shares more affordable to small retail investors.

The company plans to complete the stock split within 3 months from the date of Members' approval & subject to necessary approval(s), if any.

Bharat Bijlee Q3 Results:

In Q3FY24, the company reported a healthy profit of Rs 29.69 crore, higher compared to Rs 23.09 crore in Q3FY23 and Rs 27.89 crore in Q2FY24.

Meanwhile, Bharat Bijlee earned revenue from operations of Rs 423.74 crore in Q3FY24, also rising from Rs 388.03 crore in Q3FY23 and Rs 419.82 crore in Q2FY24.

Total income stood at Rs 433.33 crore in Q3FY24, increasing from Rs 395.12 crore in Q3FY23 and Rs 426.74 crore in Q2FY24.

About Bharat Bijlee:

Bharat Bijlee is a leading Electrical Engineering company based in India. Established in 1946, its primary business segments are Power Transformers, Projects, Electric Motors, Magnet Technology Machines, Drives and Industrial Automation solutions.

Disclaimer: The write-up highlights the shares split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.