Dwarikesh Sugar Industries Ltd today said its board has approved splitting of equity shares to enhance liquidity and increase investor base. The existing shareholders will get 10 new equity shares for every 1 currently held by them, the company said in a regulatory filing.
The board, in its meeting held today, approved “sub- division of existing 1 equity shares having face value of Rs 10 each fully paid up into 10 equity shares having face value of Rs 1 each, subject to the approval of members”, it said.
The board also approved subdivision in authorised share capital from 2,25,00,000 shares of Rs 10 each into 22,50,00,000 shares of Rs 1 each. The postal ballot notice for sub-division of shares of equity share capital and consequential alteration in memorandum of the company was also approved.
“The Board believes sub-division of shares…will result in enhanced liquidity and will help in increasing investor base,” the company said. “Our aim is to create value to our stakeholders. Sub- division of shares will help in enhancing liquidity and make our company’s equity shares even more affordable to investors at large,” said B J Maheshwari, Whole Time Director, Dwarikesh Sugar Industries.
At the end of March quarter, Dwarikesh Sugar’s shareholder base is 11,102 that includes promoters who hold 41.87 per cent stake in the company.