V-Guard Industries shares surged over 5 per cent on Friday after the Kochi-based company’s board approved a 1: 10 stock split proposal.
The scrip opened the day at Rs 1360 and has touched a high and low of Rs 1464.80 and Rs 1356.50. It finally closed 5.33 per cent up at Rs 1392.50.
V-Guard Industries has informed BSE that the Board of Directors of the company at its meeting held on June 16, 2016, considered and approved the proposal for splitting of equity shares of the company, subject to the approval of the shareholders in respect thereof, in the 20th Annual General Meeting of the Company.
Since the beginning of the ongoing financial year, shares of V-Guard Industries surged 57.66 per cent to Rs 1392.50 on June 17, 2016 from 883.20 on April 1, 2014.
The objective of the splitting shares is to improve liquidity of the shares in the market and make the shares more affordable to small investor.
“The Board of Directors in their meeting held on Thursday, the 16th June, 2016 has also recommended increase of Authorized Share Capital of the Company from Rs 35 crore to Rs 40 crore. If the proposal is approved by the members, in the 20th AGM scheduled to be held on 26th July, 2016, the Authorised Share Capital of the Company, both in value and numbers, will get increased in line with the split approved, ‘” the company said in a BSE filing .