Steel Strips Wheels Surges As Board to Discuss Stock Split Plan
Steel Strips Wheels achieved highest ever export sales in July.
Shares of the Chandigarh-based steel wheel rim maker, Steel Strips Wheels Limited (SSWL), rose as much as 5 per cent to hit an intraday high of Rs 1,665.15 after the company informed exchanges that its board will meet on September 3 to consider splitting the stock.
“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, the 3rd day of September, 2021, inter alia, to consider Sub-division/split of the equity shares of face value of Rs 10 each of the Company in such manner as may be determined by the Board of Directors,” Steel Strips Wheels said in a stock exchange filing.
A company’s authorised share capital remains the same in a stock-split, but the market price declines in proportion to the split ratio and this results in a greater number of shares available in the secondary market. The reduction of the market price and increase in liquidity makes the shares affordable to retail buyers, analysts said.
Last week, IRCTC, the tourism and catering arm of Indian Railways, had announced a stock-split in the ratio of 1:5.
Earlier this month Steel Strips Wheels achieved highest ever export sales, highest ever alloy wheel sales and highest ever tractor wheel sales, the company said.
Steel Strips Wheels achieved highest ever net turnover of Rs.306.12 crore in July 2021 versus Rs 110.35 crore in July 2020, recording a growth of 177.41 per cent and achieved gross turnover of Rs 372.22 crore in July 2021 versus Rs 132.75 crore in July 2020, there by recording a growth of 180.39 per cent.
As of 1:14 pm, Steel Strips Wheels shares were locked in a five per cent upper circuit. As may as 7,869 pending open buy orders were seen on the exchange with no sellers for the shares, BSE data showed.
