Jindal Saw Board Approves Stock Split; Shares Hit Record High

Shares of Jindal Saw Ltd. hit a record high on Friday after its board approved the splitting of its equity shares. "The proposal for alteration in the equity share capital of the company by sub-division or split of existing equity shares having a face value of Rs 2 each, fully paid up, into a face value of Re 1 each, fully paid up," the company said in an exchange filing.

The expected time of completion of the split is Nov. 30, 2024, it said.

The company said that the rationale behind the split is "to enhance the liquidity of its equity shares and to encourage the participation of retail investors by making the equity shares of the company more affordable to invest".

After the division, the current total number of shares in the company will be raised to 63.95 crore shares from 31.99 crore shares.

Shares of the company rose as much as 3.2% to a record high of Rs 710 apiece. It pared gains to trade 1.5% higher at Rs 698.45 apiece as of 2:24 p.m. This compares to a 0.1 advance in the NSE Nifty 50 Index.

The stock has risen 69.4% on a year-to-date basis and 99.26% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.53 times its 30-day average. The relative strength index was at 70.90, indicating that the stock may be overbought.

Both analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 24.5%.