Ksolves India To Split Shares In 1:2 Ratio
The rationale behind the split 'is to enhance the liquidity of the company's equity shares and make it affordable to the investors', the company says.
Ksolves India Ltd. said on Friday that its board approved the split of the company's existing equity shares, according to an exchange filing.
As part of the scheme, each equity share will be split in the ratio of 1:2. Essentially, every existing investor with one equity share of Rs 10 will get two shares having a face value of Rs 5 each, fully paid up.
The proposal of sub-division/split of the existing equity shares having a face value of Rs 10 each, fully paid up by alteration of the Capital Clause of the Memorandum of Association of the company, has been approved by the board of directors, it said.
While the proposal is subject to the approval of members of the company, Ksolves said that it will conduct the exercise approximately within two months from the date of their approval. However, that too is subject to completion of the necessary formalities.
The filing also said that the company will issue and dispatch the postal ballot notice for seeking the approval of shareholders "in due course".
The rationale behind the split, according to the company, "is to enhance the liquidity of the company's equity shares and make it affordable to the investors".
As a result of the split, while the company's authorised share capital will remain unchanged at Rs 12.50 crore, its equity shares will double up to 2,50,00,000. Likewise, while its paid-up capital will remain Rs 11,85,60,000, its equity shares will double to 2,37,12,000.
Due to the development, the trading window for dealing in its securities shall remain closed until Dec. 23, 2024. The company also added that the information "is being duly communicated to all the designated persons".
Shares of Ksolves India closed 0.07% higher at Rs 1,010.85 apiece on the BSE, compared to a 1.49% decline in the benchmark Sensex.
