Apart from the share split, the market is speculating on a very liberal bonus issue from this media giant. "The company is expected to announce a 1:1 bonus if not more to match its growing earnings," said an NSE dealer.

According to market sources, the company is likley to go in for a share split of five shares for every one share held which would result in the equity's face value coming down from Rs 10 to Rs 2 per share.

There has been some speculation about the company's plan of going in for a stock split. Expectations of a bonus and share split has already driven the stock northwards from Rs 1,300 to Rs 1,870 in the past few sessions.

The company is comfortably placed with huge reserves of over 10 times the small equity of Rs 18.66 crore, which yields a high book value of Rs109 per share.

The stock spilt in the case of Wipro and ACC resulted in an improvement in the stock discounting and is also likely to see the Zee scrip attracting a much higher discounting. The market expects the Zee counter to rally to around the Rs 2,500 level. The decision to split the stock in case of Wipro saw the scrip zooming from Rs 3,500 to a high of over Rs 4,400.

ACC on the other hand has seen its scrip rising with vengeance and has shown a steep rise after the share split from Rs 100 to Rs 10 per equity share. The scrip after being split into Rs 10 per share started trading at Rs 162 in May this year. It has now shot past the Rs 230 mark in less than three months. Higher offtake and signs of a turnaround in the economy too have been responsible for ACC's sharp surge.

The split of equity into a smaller face value results in a substantial improvement in the scrip's liquidity. Further, liquid stocks attaract a much higher discounting and marketmen feel a stock split in the case of Zee Telefilmswould result in the stock being re-rated. Stock splits make the stock affordable for retail investors.

Last year, Wipro Limited had decided to go in for a share split of five shares for every one share held. It resulted in the face value being reduced from Rs 10 to Rs 2 per share.