BEML Limited announced on Monday that its board of directors has approved a stock split of its equity shares in a 1:2 ratio, aimed at increasing liquidity and encouraging wider participation among small investors.
According to the filing, each fully paid equity share of face value ₹10 will be split into two equity shares of face value ₹5 each, subject to shareholders’ approval. The company also noted that the record date for the split will be decided and announced after shareholder approval.
The company stated that the rationale behind the stock split is to comply with the Department of Investment and Public Asset Management (DIPAM) guidelines on capital restructuring, to enhance market liquidity of the shares, and to make them more affordable for small investors.
Post-split, the issued, paid-up, and subscribed share capital will remain at approximately ₹41.64 crore, but the number of shares will double from around 4.16 crore to 8.32 crore. The authorized share capital of ₹100 crore remains unchanged.
The company expects the process to complete within two to three months following shareholders’ approval. No shareholders are expected to lose shares as part of this process.
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