Shares of Havells India, maker of electrical equipment, soared over 12 per cent post stock-split to touch one year high in a subdued market today.
The company stock surged 12.18 per cent to Rs 279.70, a 52-week high on the BSE as against 249.31 (adjusted basis). The stock had closed at Rs 1,246.55 (pre-split) yesterday.
Havells had announced a stock split in the ratio of 5:1, that is every share with face value Rs 5 will be split into 5 shares of Re 1 each.
The company had in a filing to the BSE on August 11 said it has fixed August 27, 2014 as record date for the purpose of sub-division of equity shares of Rs 5 per share of the company into 5 shares of Re 1 each. However, the split has taken effect today itself.
Stock split increases liquidity of a share as more retail investors buy the share due to its reduced price per share