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Aerospace and defense company Apollo Micro Systems has announced to split the shares of the company. According to an exchange filing by the company, the board has approved the sub-division of equity shares in the ratio of 10:1. It means that each share will be divided into 10 shares.
The face value of each share of the company is Rs 10. After the split, the face value will reduce to Re 1.
A company announces to split shares to enhance liquidity. It also aims to make the share price cheaper as the price is adjusted in the split ratio.
This results in the increase of the shareholder base and also the outstanding number of shares in the capital market. The shares become more affordable to small investors and traders. Apollo Micro Systems shares settled at Rs 360 apiece on NSE on Friday.
"The board has approved the Sub-Division/Split of equity share of face value of Rs 10 into 10 equity shares of Rs 1 each, subject to the approval of the Members of the Company and regulatory/statutory approvals as maybe required," Apollo Micro Systems said in the filing .
The company said that the board is yet to fix the record date for determining the eligibility of the shareholders for receiving the benefit of the split.
The record date for the split of equity shares, according to the filing, shall be decided by the board and will be intimated in due course of time.
The exercise is expected to be completed within 3 months from the date of shareholders' approval, it added.
Apollo Micro Systems is a small-cap company. The company is a pioneer in the design, development, assembly and testing of electronic and electro-mechanical solutions. The company's shares have yielded a whopping 224 per cent returns in the past 6 months while 148 per cent in 1 year.
Meanwhile, the company has secured a provisional allotment of land from Telangana State Industrial Infrastructure Corporation Limited for setting up of electronic industry in Rangareddy district.