Multibagger Update: Salasar Techno Engineering outperformers on stock split news
The shares of Salasar Techno Engineering Ltd surged 4 per cent to Rs 269 on BSE during Tuesday's intraday trade in an otherwise neutral & volatile market.
The shares of Salasar Techno Engineering Ltd surged 4 per cent to Rs 269 on BSE during Tuesday's intraday trade in an otherwise neutral & volatile market.
The stock hit a high of Rs 279 in the early trade on Tuesday after the company announced that the board of directors will meet on April 30, 2022, to consider a stock split proposal. Salasar Techno Engineering Ltd has recently outperformed the market by a significant margin. The stock has gained 15 per cent in the last one month as compared to a 1.38 per cent fall in S&P BSE Sensex.
Furthermore, it has increased by 19 per cent in the last year as compared to 17.88 per cent for the benchmark index. On July 13, 2021, it reached a new high of Rs 370.75. The stock was up by 5 per cent at Rs 273 at 10 am, compared to a 21-point drop in S&P BSE Sensex.
In an exchange filing, the company mentioned, "On April 30, 2022, a meeting of the company's board of directors will be held to consider a proposal for sub-division of the company's equity shares with a face value of Rs 10 each, in such manner as the board of directors may determine, subject to regulatory/statutory approvals as may be required along with the approval of the company's shareholders.”
A stock split is usually done to boost liquidity and make the company more accessible to small retail investors. Companies frequently choose to split their stock in order to lower the market price to a more reasonable level for most investors as well as to boost the liquidity of trading in their shares. It refers to the process of splitting the face value of a company's shares, resulting in a rise in the number of shares issued while the market capitalisation remains the same. Existing shares are split in half but the underlying value remains the same. The price per share decreases as the number of shares grows.