Exxaro Tiles Announces 1:10 Stock Split

Exxaro Tiles Ltd. on Monday announced a stock split of the existing one equity share into 10 equity shares. This is the first time that the company has announced a stock split and is subject to approval by the shareholders.

The board of directors approved the division of the shares to enhance liquidity of the shares in the stock market and to encourage wider participation of small investors, the company said in an exchange filing.

The record date for the stock split will be decided after a nod from the shareholders.

After the division, the face value for each equity share will fall to Rs 1 from the current Rs 10. The company expects to complete the stock split within two to three months after the shareholders' approval.

The company has not considered an issue of bonus shares prior to this.

The company's total income in the quarter ended June 2024 stood at Rs 60.04 crore. It reported a loss of 4.27 crore in the first quarter of this financial year. The company's total debt as of March 2024 stood at Rs 97.45 crore.

Exxaro Tiles was incorporated in 2008 and is involved in the marketing and manufacturing of vitrified tiles. The company manufactures double-charge vitrified tiles (double-layer pigment) as well as glazed vitrified tiles made from ceramic materials such as quartz, clay, and feldspar.

It supplies products to large infrastructure projects such as educational institutions, hotels, governments, and hospitals, among others.

The company has two manufacturing facilities that are located at Padra and Talod in Gujarat.

The shares of Exxaro Tiles rose as much as 4.28% during the day to Rs 95.69 apiece on the NSE. The stock closed 1.75% higher at Rs 93.37 per share. This compares with a 0.07% advance in the benchmark Nifty 50. It has fallen 32.88% in the last 12 months and 19.92% year-to-date.