The board of sugar manufacturer Britannia Industries today approved the split of the share in a ratio of 1: 2 to make the shares more affordable for small retail investors and to increase liquidity. The Kolkata-based company divides the shares with a nominal value of Rs 2 into two shares of Re 1 per share.
The company said in a regulatory dossier that the division would depend on the approval of members and authorities, if applicable.
"There was a significant increase in the market price of the company's shares during a period of last year," it said.
"In order to improve the liquidity of the Company's Shares in the Equity Markets and make them more affordable for small retail investors, it is proposed that Shares with a nominal value of Rs 2 each in 2 Shares of the par value of R 1 each, "it added.
Britannia has authorized share capital of Rs 50 crore of 25 crore shares. In addition, it has 12.01 crore own shares of Rs two each.
After the split, the "Rs 50 crore would be divided into 50 crore shares of the nominal value of Re 1 each", it said. Similarly, the 24.03 crore shares would have Shares of Re 1 each.
The company expects it to be completed within "3-4 months after the date of approval by the Board of Directors". Britannia Industries has also amended the articles of association and all other applicable provisions relating thereto.