KPR Mill ALERT! Share of this textile company zooms on the back of stock split news; Scrip almost doubled in 6 months

On the back of stock split news, the shares of the textile company — KPR Mill zoomed 10 per cent to touch a new 52-week high of Rs 1,868 per share on the BSE intraday trade on Thursday. The stock has breached its previous high of Rs 1,780, hit on July 6, 2021.

The company in its exchanges filing said, “A meeting of the board of directors of the Company is scheduled to be held on July 27, 2021, to consider the proposal for sub-division of the face value of the equity shares of the Company, subject to the approval of shareholders.” 

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The board will also consider the un-audited financial results for the quarter ended June 30, 2021 (Q1FY22), KPR Mill also revealed.

The company will sub-divide the face value of equity shares from Rs 5 each to a lower denomination to make the stock more affordable for the small retail investors and increase liquidity.

Stock split refers to splitting the face value of the shares of companies. When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. 

Existing shares split, but the underlying value remains the same. The price per share goes down as the number of shares increases. 

At around 11:45 am, the scrip was trading near 6 per cent higher to Rs 1795.3 per share on the BSE, as against a 0.37 per cent decline in the S&P BSE Sensex. The counter has soared around 21 per cent in the last five sessions, while it almost doubled in the last six months. 

A combined around 140,000 shares had changed hands on the counter on the NSE and BSE so far.