This Nifty50 stock announces its first-ever stock split; 220% interim dividend

Shriram Finance in its board meeting held on Friday (October 25) announced a stock split in the ratio of 1:5. This means that the NBFC company will split one share of Rs 10 face value into five equity shares of face value of Rs 2.

The record date for the purpose of the sub-division/ split of equity shares shall be decided after obtaining approval of Members of the Company and the same will be intimated in due course, said the company's filing with the exchanges. 

Typically sub-division or stock split is a corporate action which without any change in market capitalisation or value extracts more number of shares from a share. Consequently, the price of the share comes down sharply rendering it more affordable for investors. This is the first time- the vehicle financing major has announced a stock split since its listing.

Alongside, the company has also announced an interim dividend of 220 per cent or Rs 22 for the fiscal year 2024-25.

Shriram Finance Q2 results 

The Net Interest Income for the second quarter ended 30th September, 2024 increased by 16.37 per cent and came in at Rs. 5,606.74 crores as against Rs. 4,818.18 crores in the same period of the previous year. The profit after tax increased by 18.30 per cent and stands at Rs. 2,071.26 crores as against Rs. 1,750.84 crores recorded in the same period of the previous year.

The earning per share (basic) increased by 18.04 per cent and stands at Rs. 55.09 as against Rs. 46.67 recorded in the same period of the previous year.

Ahead of the results, the company's shares ended lower by 4 per cent at Rs 3,117.95 apiece.