5:1 Stock Split Decided For The 1st Time: Record Date To Be Fixed; BUY?

Capital India Finance is a non-banking financing firm that offers financial services and has its headquarters in Mumbai. The company is dedicated to offering a broad range of financial services and products. Following the Board of Directors' announcement of the first stock split since the company's founding, Capital India Finance's shares closed Tuesday's trading session on the BSE 0.91% higher at Rs 189.30 per share, with a market capitalisation of Rs 1,471.51 Cr.

Capital India Finance Stock Split

The Board of Directors of the company, in their meeting held on December 24, 2024 considered and approved "sub-division / split of 1 (one) equity share of the Company having face value of INR 10 (Indian Rupees Ten only) each in the authorised, issued, subscribed and fully paid‐up equity share capital into 5 (five) equity shares having face value of INR 2 (Indian Rupees Two only) each, subject to approval of members of the Company. The record date for the purpose of the sub-division/ split of equity shares shall be decided post approval of the shareholders and the same will be intimated in due course."

The rationale behind 5:1 stock split is to facilitate the participation of retail and potential investors to buy the equity shares of the company at an affordable market price and enhance the liquidity of the company's equity shares, said Capital India Finance in a stock exchange filing.

Capital India Finance News

The Board of Directors also considered, and accorded its approval to "make application for listing the equity shares of the Company post its sub-division / split, to the main board of National Stock Exchange of India Limited ('NSE'), by way of direct listing, subject to requisite approvals," said Capital India Finance in a stock exchange filing.

Capital India Financials

In the September 2024 quarter, the company's revenue from operations was Rs 52.90 crore, rising 3.33% from Rs 51.19 crore in the September 2023 quarter. In Q2FY25, the company's net profit was Rs. 3.21 crore, a 42.31% drop from Rs. 5.57 crore in Q2FY24. In the September 2024 quarter, EBITDA was Rs. 23.23 crore, a 19.59% fall from the September 2023 quarter's Rs. 28.89 crore.

Capital India Finance Share Price Target

"Capital India Finance stock price is bearish on the Daily charts with strong resistance at 196. A Daily close below support of 185 could lead to a target of 153 in the near term," said A R Ramachandran, Independent Research Analyst.

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