The board of Sera Investments & Finance India Ltd, a Non-Banking Financial Company (NBFC) has approved the split/ sub-division of its shares in the ratio of 1:5. At 03:12 PM, its shares were locked in an upper circuit at ₹ 299.45 apiece, up 5%.
According to an exchange filing by the company, its board has considered and approved the sub-division of one equity share having a face value of ₹ 10 into five equity shares having a face value of ₹ 2 each subject to necessary approvals.
The company said that the rationale behind the split is to enhance the liquidity in the capital market to widen the shareholder base and make the shares affordable for small investors. The split is expected to be completed within two months from the date of approval by the board of directors, but the record date is yet to be announced.
Sera Investments has given multibagger returns of 419.88% to its shareholders in the past year, as its share price increased from ₹ 57.60 apiece to the current level. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 5.19 lakhs today!
Sera Investments is a micro-cap company with a market capitalization of ₹ 285 crores. It has an ideal debt-to-equity ratio of 0.15, but a negative return on equity of 7.67%. Its net income fell to ₹ 0.69 crores in the latest quarter, Q3FY23 as compared to ₹ 3.25 crores during the corresponding quarter last year. It reported a net loss of ₹ 1.23 crores in the latest quarter, as compared to ₹ 4.26 crores reported in the same quarter last year.
Written by Simran Bafna
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