Shares in Titagarh Wagons surged over 6 per cent to an intraday high of Rs 747 on Thursday after the company decided to split its shares in 5:1 ratio. Each share having face value of Rs 10 will be divided in to 5 shares of Rs 2 face value.
Companies prefer to go for stock split when share prices go up substantially, making it difficult for retail investors to invest in the stock. Post stock split, liquidity of a share increases as lower market price attracts more retail investors.
Shares in Titagarh Wagons ended 4.9 per cent higher at Rs 736 apiece, outperforming the broader Nifty, which closed with 0.17 per cent gains.
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