Shares of India's major private sector lender HDFC Bank ended higher on Thursday after the stock went ex-split.
Shares of India’s major private sector lender HDFC Bank ended higher on Thursday after the stock went ex-split. HDFC Bank shares closed 0.64% higher at Rs 1,100.40 on BSE. HDFC Bank shares wenr ex-split after the firm received board had approved for sub-division of one equity share of face value of Rs 2 each into two equity shares of face value of Re 1 each at its annual general meeting (AGM) held earlier on July 12. Following the 1:1 stock split, HDFC Bank shareholders will now be left with two shares of face value of Re 1 instead of one share of face value of Rs 2 each.
Notably, HDFC Bank shares had gone ex-split earlier in 2011, when the lender had split its shares in 2011 in a ratio of 1:5, or one share of Rs 10 split into five shares of Rs 2 each. A stock split basically divides existing shares into multiple shares, thereby increasing the liquidity, and lower the trading price of the stock on the exchanges. HDFC Bank shares have given about 3% return in the year since January, even as the headline indices have given negative returns in the period. With a total value of above Rs 6 lakh crore in mcap, HDFC Bank is India’s third most valued company after TCS and Reliance Industries.
Even as the economy reels under a slowdown, upcoming Diwali is expected to be very good for HDFC Bank and its partners, Aditya Puri, MD, HDFC Bank told CNBC TV18. Enough money is being pushed into the system and good monsoon would help the economy going forward, the veteran banker added. The largest private sector lender has decided to begin a global search to find a successor to the founding-chief executive Aditya Puri, who retires in October 2020. “HDFC Bank will be king-with or without me,” Puri added.