Stock split: Realty stock under Rs 100 considers sub-division - check details

Stock split: Atal Realtech shares are all set for sub-division or split. According to an exchange filing by the company, the board will meet soon to consider and approve the sub-division of the face value of equity shares.

"A meeting of the Board of Directors of the Company is scheduled to be held on Thursday, 21 September 2023 inter alia, to consider and approve sub-division/stock split of equity shares of the company," it said in an exchange filing.

Atal Realtech is in the business of civil construction and government contracting. It provides integrated contracting and sub-contracting services for construction, engineering and infrastructure projects.

Split is a corporate action to sub-dividend the face value of equity share. The rationale behind the split is to enhance the liquidity in the stock and widen the shareholder base.

When a stock turns ex-split, the price is adjusted in the split ratio. It helps the company in making its shares more affordable to small investors.

Meanwhile, the company in the first quarter of the financial year 2022-23 reported net sales of 4.33 crore. For the full financial year 2023, it had reported a 5 per cent increase in net sales to Rs 40.63 crore.

Notably, the domestic residential market is likely to remain buoyant as visible from the best-ever absorption in any first quarter since 2008, according to Nuvama. 

Driven by buoyancy in demand and bullish guidance for FY24, the Nifty Realty index outperformed the Nifty by 27.3 per cent over the last six months.

The Nuvama report said that the Nifty Realty index is expected to stay strong going forward owing to a pause in rate hikes, record low inventory levels, improved household savings, higher disposable income and constrained supply addition.