In a regulatory filing, the company said its board of directors, at a meeting held on Friday, January 16, has approved the corporate actions and has recommended the proposals for shareholder approval through postal ballot.
Under the stock split plan, the company will subdivide equity shares from a face value of Rs 10 each to Rs 2 each, meaning one fully paid-up equity share of Rs 10 will be split into five fully paid-up equity shares of Rs 2 each.
The company added that the record date will be determined later.
A stock split increases the number of shares outstanding while proportionately reducing the face value per share, typically aimed at improving trading liquidity and affordability by bringing the per-share price lower, without changing the shareholder’s overall holding value purely due to the split.
In Silver Touch Technologies’ case, shareholders holding shares as of the record date (to be announced) will receive five shares for every one share held after the subdivision becomes effective.
Separately, the company has also announced a 1:1 bonus issue, which means eligible shareholders would receive one additional equity share for every one share held, subject to the terms and approvals mentioned in the company communication.The developments come at a time when the stock has been on a strong run. Price-performance data shows Silver Touch Technologies is up 135.10% over the last one year, and has gained 121.91% in six months and 121.83% in three months.
The stock has risen 81.20% in the past one month and is up 44.52% on a year-to-date basis, while it has moved 27.28% higher over the last two weeks, despite a 4.77% decline over the last one week.
Trendlyne data indicates that Silver Touch Technologies has not split the face value of its shares since 2000, and has not announced any bonus since the same time, making this announcement its first such move in decades, as reflected in the trackers shown.
After this announcement, the shares of Silver Touch Technologies were trading nearly 5% higher at Rs 1,598 on the BSE.
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