Bharat Dynamics board approves stock split in 1:2 ratio, declares interim dividend of ₹8.85 per share
Upstox
2 min read • Updated: March 21, 2024, 5:41 PM
Summary
Bharat Dynamics said the stock split will come into effect around 2-3 months after shareholders’ approval. The move is aimed at encouraging wider participation of small investors and to enhance liquidity of the equity shares in the stock market, it said. In a regulatory filing, the state-run firm also announced an interim dividend of ₹8.85 per share, which would be paid on or before April 18, 2024.
State-run defence manufacturer Bharat Dynamics on Thursday, March 21, said its board of directors has given the nod to split the company’s stock in the ratio of 1:2.
As of now, the company’s authorised share capital of ₹200 crore is divided into 20 crore shares, carrying a face value of ₹10 each. Following the split, the amount will be divided into 40 crore shares of face value of ₹5 each.
Similarly, the company’s issued, paid-up and subscribed share capital of ₹183.28 crore – currently divided into 18.32 crore equity shares of face value of ₹10 each – will be split into 36.65 crore equity shares carrying a face value of ₹5 each.
The move is expected to be completed in about two to three months after the shareholders’ nod, a regulatory filing stated. The company said it would be conducting an e-vote to seek approval from shareholders, adding that the cut-off date for determining the shareholders eligible to vote has been fixed as March 22, 2024.
The reason behind the stock split is to comply with the Department of Investment and Public Asset Management’s (DIPAM) “guidelines on capital restructuring”, Bharat Dynamics said. The move is also aimed at encouraging wider participation of small investors and to enhance liquidity of the equity shares in the stock market, the exchange filing added.
On March 21, the shares of Bharat Dynamics settled 2.4% higher at ₹1,660 apiece. The announcement related to the stock split, along with the declaration of interim dividend, was made after the market hours.
Interim dividend declared
The board has declared an interim dividend of “₹8.85 per equity share of ₹10 each fully paid-up for the financial year 2023-24”, Bharat Dynamics informed the bourses.
The record date for the purpose of payment of the interim dividend has been fixed as April 2, 2024, and the payment will be completed on or before April 18, 2024, it added.
New CFO announced
The company’s board has approved the appointment of G Gayatri Prasad as the company’s new Chief Financial Officer (CFO) with immediate effect. The appointment was necessitated due to the cessation of incumbent CFO N Srinivasulu.
Prasad, who has 27 years of experience in Bharat Dynamics, was heading the finance department as the company’s General Manager (Finance).