Info Edge share price rises 4% as board approves first-ever stock split in 1:5 ratio
Info Edge's Board approved a 1:5 stock split, enhancing share liquidity and affordability for retail investors. The record date for the split is yet to be announced. The decision is subject to shareholder approval and regulatory requirements. Info Edge shares rose 3.7% following the announcement.
The Board of Directors of Info Edge on Wednesday, February 5, approved the first-ever stock split by the company, with the share split ratio fixed at 1:5. This means that one share of the company, having a face value of ₹10 apiece, will be split into five shares of the face value of ₹2 each.
Following the announcement, Info Edge share price rallied nearly 4%.
The company said the stock split will enhance the liquidity of the company's shares and encourage the participation of retail investors by making them more affordable.
Info Edge, however, did not disclose the record date for the said stock split. The record date will help determine the shareholders who are entitled to receive the additional shares by way of a stock split.
"The Record Date for the purpose of the sub-division/split of equity shares shall be decided after taking the aforesaid approval of the shareholders of the Company, and the same will be intimated in due course," said the company.
The company added that the stock split is subject to the approval of the shareholders by way of a Postal Ballot and any regulatory/ statutory approvals, as may be required under applicable laws.
Apart from the decision on the share split, Info Edge investors are also eyeing the announcement of December quarter earnings that are slated to be released today.
Info Edge Share Price Impact
The shares of Info Edge gained following the announcement of a stock split, rising 3.7% to ₹7,988.70 apiece on the BSE.
Info Edge share price opened at ₹7704.25, in line with its previous close of ₹7704.05. However, the large-cap stock extended gains as the session progressed.
The company, with a market capitalization of ₹1.03 lakh crore, has performed well over the last one year, returning 54% to its investors.
In the past six months, the stock is up 10% while it has risen 3% over a 3-month period. However, the company's stock has faced a selloff in the last one month amid broader market weakness and declined nearly 12%.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.