The board of directors of the Noida-based electronics manufacturing services company (Dixon Technologies) approved a stock split on February 2 and set March 19 as the record date. It had authorized, subject to shareholder approval, the division of existing one equity share with a face value of Rs 10 each completely paid up into five equity shares with a face value of Rs 2. The stock's market capitalization increased to Rs 25,302 crore. On the volume front, there was an increase in trading as 47,000 shares changed hands over the counter, compared to 3,998 shares in the previous two weeks.
"The Board of Dixon Technologies (India) at its meeting held on 02 February 2021 has approved a stock split of existing I (one) equity share of the face value of Rs. 10/- each fully paid up into 5 (Five) Equity Shares of Rs. 2/- each fully paid up, subject to shareholders' approval," it said in a BSE filing. This stock split turned ex today, which improved liquidity and brought the price to levels retail shareholders would be comfortable investing in. This stock split turned ex today, which improved liquidity and brought the price to levels retail shareholders would be comfortable investing in.
Dixon Technologies India's stock grew over 14% in early trading on Thursday, reaching a 52-week high of Rs 4,588 on the Bombay Stock Exchange, in line with the consumer durables index, which was up 1%. The stock went ex-stock in a 1:5 split, going from Rs 10 to Rs 2. The stock of Dixon Technologies has surpassed its previous high of Rs 4,300, set on March 15, 2021.
The company normally chooses to break its stock to make it more competitive for small retail investors and to raise liquidity.
Source:- Business today.