Kirloskar Pneumatic Company Limited has announced a stock split in the ratio of 1:2, a move aimed at improving liquidity and making its shares more accessible to retail investors.
Stock Split Details
The company’s Board of Directors has approved the sub-division of equity shares, subject to shareholder approval at the upcoming Annual General Meeting (AGM). Under this proposal, each existing equity share with a face value of ₹2 will be split into two equity shares with a face value of Re.1 each.
This effectively doubles the number of shares held by investors while proportionally adjusting the share price, leaving the overall investment value unchanged.
Key Highlights of the 1:2 Split
Each 1 equity share (₹2 face value) will be split into 2 equity shares (Re.1 face value). The primary objective behind the split is to enhance liquidity in the stock market and attract participation from small investors.
Impact on Share Capital
Despite the increase in the number of shares, the company’s overall share capital will remain unchanged.
The authorised share capital will continue at ₹37.5 crore, while the subscribed and paid-up capital will remain at ₹12.99 crore. However, the number of shares will increase post-split.
Before the split, the paid-up equity share capital consisted of approximately 6.49 crore shares of ₹2 each. After the split, this will increase to about 12.99 crore shares of Re.1 each.
Timeline and Approval Process
The company expects to complete the stock split within a period of six months, subject to shareholder approval and necessary regulatory compliances under Securities and Exchange Board of India (SEBI) Listing Regulations.