Mafatlal Industries is a small-cap company that operates in the textile industry. It has been in existence for 117 years. It has given multibagger returns in the past six months and its board has announced a stock split.
The board of directors of the company has fixed Friday, November 25, 2022, as the record date for determining the eligibility of shareholders, with regard to the subdivision (split) of existing equity shares. To be eligible for the stock split, shareholders will have to buy the shares before the ex-date so that they get credited to their account by the record date.
Mafatlal Industries‘ existing equity shares have a face value of ₹ 10 each (fully paid up). Each of these shares will be split sub-divided into five shares of ₹ 2 each (fully paid-up). The shareholders had approved the split by voting through postal ballot by way of electronic means on 7th November 2022.
Earlier, in an exchange filing, the company explained the rationale behind the split. It said that the split will increase the floating number of shares in the hands of public shareholders, enhance the liquidity of shares and encourage the participation of small investors by making the price more affordable.
In addition, the company is altering the Capital Clause (Clause V) of the Memorandum of Association of the Company(“MoA”). Currently, the company has an authorized capital of 10 crores shares of ₹ 10 each. However post-split, it will have an authorized capital of ₹ 100 Crores, divided into thirty-five crore equity shares of ₹ 2 and three crore preference shares of ₹ 10 each.
It had an issued paid-up and subscribed capital of ₹ 14.09 crores (1,40,96,486 shares * ₹ 10). Post-split, the capital will remain the same, but it will be divided into 7,04,82,430 shares of ₹ 2 each.
Mafatlal Industries has given multibagger returns of 101.25%, year-to-date. Its share price increased from ₹ 176.35 to ₹ 354.90. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 2.01 lakhs today.
Written by Simran Bafna
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