Under the stock split, an existing equity share of the company with a face value of Rs 10 per share each will be sub-divided into 10 fully paid-up equity shares of the face value of Re 1 per share.
A stock split is a corporate action where a company increases the number of its shares by dividing existing shares into smaller units – without changing the overall value of the investment. A company undertakes share sub-division to improve affordability, increase liquidity and grow its investor base.
Meanwhile, the increase in the company’s authorised share capital will involve a corresponding amendment to the Capital Clause of the Memorandum of Association, which will also require shareholder approval.
The twin measures signal the company’s intent to strengthen its capital base while improving market accessibility, positioning itself for future growth opportunities.
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Deepak Builders is a Ludhiana-based engineering & construction company which specializes in construction of institutional buildings like hospitals & medical colleges, industrial buildings, stadiums and sports complexes, among other things.
Its shares today ended at Rs 83.34 on the NSE, down by Rs 1.33 or 1.57% over Monday’s closing price. The company has a market capitalization of Rs 390.81 crore.The stock has seen a strong rally over the past one month, rising 39%. This is a significant outperformance compared to Nifty and the BSE Sensex, whose returns are to the tune of 5% and 4%, respectively.
Notwithstanding the recent rally, the stock’s price has eroded over 40% in the past 12 months.
The microcap counter was listed on October 28, 2024.
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