Waaree Renewable shares surged 10% and hit a 52-week high of Rs 2,703.95 on 5 January after the company announced that its board would consider a stock split in the upcoming board meeting that has been scheduled for 20 January.

If the stock split is approved by the board, this will mark the first stock split since its listing.

A stock split is where a company divides its existing shares into multiple shares to increase the number of shares outstanding while proportionally decreasing the price per share. A stock split does not change the overall market value of the company or the investor’s ownership of the company. The main aim of a stock split is to make the shares more affordable and potentially increase liquidity by attracting a broader range of investors.

The shares have been making a buzz after the parent company, Waaree Energies, filed documents for an initial public offering.

In one year, the shares have given a multi-bagger return of 438% against the benchmark Nifty50 which has given a return of 21.56% during the same period.

The company is in the business of generating electricity using renewable energy sources and works in on-site solar projects and off-site solar projects.

At 3:30 pm, the shares of Waaree Renewable closed 9.41% higher at Rs 2,689.40 on NSE.