Capital India Finance To Split Each Share Into Five
The Capital India Finance stock split will facilitate participation of retail and potential investors to buy shares of the company at an affordable market price.
Capital India Finance Ltd.'s board on Tuesday approved a stock-split plan in the ratio of 1:5 to improve liquidity. One fully paid‐up equity share having a face value of Rs 10 each will be split into five shares having a face value of Rs 2 each, subject to shareholder approval, according to an exchange filing.
The stock split will facilitate the participation of retail and potential investors to buy the equity shares of the company at an affordable market price and enhance the liquidity of the company’s equity shares, the filing said.
The record date will be decided post approval of the shareholders. The stock split will be carried out within three months of the approval.
The e-voting facility for shareholders registered on the company's list as of Dec. 27 will be open between Dec. 31 and Jan. 29.
The promoter shareholding in the non-bank finance company is 73% as of September 2024.
Capital India Finance is an integrated financial services platform offering customised finance solutions and providing loans against property to SME/MSME segments.
In October, the company announced a strategic sale of its housing finance subsidiary, Capital India Home Loans Ltd., for Rs 267 crore to Weaver Services Pvt.
Shares of Capital India Finance closed 0.9% higher at Rs 189.30 apiece on the BSE, ahead of the announcement, compared to a 0.09% decline in the benchmark Sensex. The stock has gained nearly 40% so far this year.
