Bansal Wire Industries' Board of Directors approved the stock split proposal at its meeting on Wednesday, August 12. According to reports from ET Now, the company's Board considered and approved the sub-division of its equity shares in a 1:5 ratio, meaning each existing equity share will be split into five shares. The company announced in an exchange filing that the proposal involves splitting one existing equity share with a face value of ₹5 into five equity shares with a face value of ₹1 each, both fully paid-up. The stock split is aimed at boosting liquidity and making the shares more accessible to retail participants, with the face value of the company's equity shares being reduced from ₹5 per share to ₹1 per share.
Under the 1:5 stock split, shareholders holding one equity share of Bansal Wire Industries will be eligible to receive five shares after the corporate action is implemented. As reported by ET Now, the stock split does not change the overall value of investors' holdings by itself, instead increasing the number of shares while the price adjusts proportionately. The company has not yet fixed the record date for the stock split, with this decision pending after obtaining shareholder approval. The total number of outstanding equity shares of the company will increase five-fold post-split, with the company emphasizing that the sub-division is subject to approval from the company's shareholders.
According to the company's regulatory filing, the record date for the sub-division/split of equity shares will be decided after obtaining shareholder approval and will be communicated separately. As reported by ET Now, this timeline indicates that the actual implementation of the stock split will depend on the completion of the shareholder approval process. The stock split is subject to necessary shareholder and regulatory approvals before implementation, with investors now tracking the shareholders' approval and subsequent announcement of the record date which will determine eligibility for the proposed 1:5 stock split.
Shares of Bansal Wire Industries were trading at ₹326, representing an increase of ₹6.15 or 1.92% from the previous day's close of ₹319.85 on the BSE at the time of the filing. According to ET Now, this positive movement occurred before the announcement of the stock split approval, suggesting investor interest in the company's corporate action. The company's market capitalization stands at ₹5,008 crore, trading at a price-to-earnings ratio of 35.24 and a trailing twelve months earnings per share of ₹9.08. The stock trades at 3.53 times its book value, with the 1:5 split expected to lower the per-share trading price and enhance trading liquidity on the exchanges.
