Godawari Power & Ispat shares had surged 5 per cent to Rs 1,270 per share on the BSE in Tuesday’s session after the company announced that its board of directors in a meeting held today had approved the proposal of sub-division of shares (stock split) in the ratio of 1:2 to improve the liquidity of the company’s share on the stock market and also to facilitate small investors to deal in its shares.
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The board approved the proposal for sub-division of equity shares of the face value of Rs 10 each of the company into two equity shares of Rs.5 each, subject to the approval of the shareholders of the company,” Godawari Power said in an exchange filing.
The company’s board has also decided to issue bonus shares in the ratio of 1:1 by capitalising the free reserves after the proposal for a split of the shares is approved by the company’s shareholders. “One equity share of Rs 5 each as a bonus for every one equity share of 5 each fully paid up (Post Sub-division) of the company,” it added.
To accommodate the proposed issue of bonus Shares, the company has decided to increase the authorised equity share capital from the existing Rs 49.8 crore to Rs 70.8 crore by the creation of additional 2.1 crore equity shares of Rs 10 each (4.2 crore equity shares of Rs 5 each post-sub-division) subject to the approval of the shareholders of the company.
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