Shriram Finance Ltd. has announced a stock split of its equity shares, with a ratio of 1:5, following a board meeting held on Oct. 25, 2024. The decision involves subdividing one fully paid equity share of Rs 10 face value into five fully paid equity shares of Rs 2 each. This move is contingent upon approval from the company's shareholders, which will be sought through a postal ballot.
The board's decision aims to enhance the liquidity of Shriram Finance's shares and make them more accessible to retail investors.
The record date for the stock split will be announced after receiving shareholder approval, with the process expected to be completed within three months.
Earlier it was reported on Oct. 18, that Shriram Finance's board is considering a stock split and the final decision will be made on Oct. 25, when the board meets to consider approval of unaudited standalone and consolidated financial results for the second quarter and half year ended Sept. 30, 2024.
Shriram Finance reported a year-on-year increase in total income of 18%, reaching Rs 10,097 crore in the second quarter, compared to Rs 8,564 crore in the previous year. The company's net profit also saw a significant rise of 20.2%, amounting to Rs 2,153 crore, up from Rs 1,792 crore.
A stock split is typically implemented by a company to increase its number of outstanding shares and enhance trading liquidity, making the stock more affordable for shareholders.
In addition, Shriram Finance has announced an interim dividend of Rs 22 per equity share, with a face value of Rs 10 for financial year 2025. The record date for this interim dividend is set for Nov. 7, 2024, and eligible shareholders can expect the payout by Nov. 24, 2024.
Shares of Shriram Finance closed 4.70% lower at Rs 3,092.65 apiece on the NSE, compared to a 0.90% decline in the benchmark Nifty 50.The stock has risen 70.29 % on a year-to-date basis.
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