NSE-listed Servotech Power Systems has announced a sub-division of its equity shares, according to an exchange filing. The current face value of each share of the leading manufacturer of LED lights, solar panels and UVC disinfection products is Rs 2. According to the filing, the face value of each share will be sub-divided from Rs 2 to Re 1.
The decision to split the face value of the shares was taken at a board meeting of the Delhi-based company on Thursday.
“Subdivision (split) of the Ordinary Shares of the Company of the face value of Rs. 2/- (Rupees Two only) each (fully paid) into Two (2) Ordinary Shares of the face value of Rs. 1 /- (Rupees One only) each one (Fully Paidup),” the company said in a filing.
The subdivision of the equity shares is subject to shareholder approval at the next scheduled annual general meeting.
The rationale behind the equity share split is to improve the liquidity of the company’s equity shares and encourage wider market participation.
After sub-division, the total number of equity shares of the company in the secondary market would increase to 22 crore, the filing said.
Notably, this is the second stock split the company has announced within a year. Earlier, the company announced sub-division of its shares in the ratio of 5:1, which means that each share with a face value of Rs 10 was sub-divided into Rs 2 each. The subdivision took place in February this year.
Servotech Power Systems is a small cap company with a market capitalization of around 942 crore. It has provided a multiple return of 197 percent in the last 6 months. In the past year, there has been an increase of more than 550 percent. The company is also involved in manufacturing electric vehicle chargers. It is also known for manufacturing inverters and UPS.
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