Som Distilleries & Breweries board to meet on April 2 to consider stock split; shares jump

Som Distilleries & Breweries shares surged on Thursday, snapping a three-day losing streak, after the liquor maker said its board would meet on April 2 to consider a stock split proposal. The Som Distilleries & Breweries stock jumped by as much as Rs 31, or 14 per cent, to Rs 251.7 apiece in intraday trade before settling with a gain of 12.9 per cent for the day at Rs 249.2 apiece on BSE.

After market hours on Wednesday, the company said its board is scheduled to meet on Tuesday, April 2, 2024, at its corporate office in Bhopal, Madhya Pradesh, with the following agendas: 

• Sub-division/split of existing equity shares of the company having a face value of Rs 5 each, fully paid up 
• Alteration of authorised the share capital clause of its Memorandum of Association  
• Obtaining shareholders’ approval for a split of equity shares and alteration of authorised share capital of Memorandum of Association and to fix of day, date, time, and venue of the proposed Extraordinary General Meeting and approve the related final notice 
• Any other matter with the approval of the chairperson

Som Distilleries & Breweries share price: Past performance 

Som Distilleries & Breweries shares have delivered a return of more than 78 per cent in a year, sharply outperforming a 29 per cent rally in the headline Nifty50 index. 

What is a stock split?

A stock split or share split, as the name suggests, is a type of corporate action wherein a company divides its existing shares into multiple shares. A share split does not change the company's overall market value.

So what does it do?

A stock split simply reduces the price per share.

Typically, companies split their shares to achieve goals such as liquidity enhancement. 

All in all, share splits are strategic moves by companies to make their stock more accessible and attractive to a wider range of investors, ultimately benefiting both the company and its shareholders.

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