Non-banking finance company Muthoot Finance on Friday said its board of directors will meet on July 18 to consider the proposal for stock split. In a regulatory filing the company said its a meeting of the board is scheduled to be held on July 18, to consider and approve the proposal for sub-division/stock split of equity shares of the company, subject to shareholders approval. Stock split is a process, in which the company divides its existing shares into multiple shares to boost the liquidity of the shares.
Although the number of shares outstanding increases, the total value of the shares remains the same compared to pre-split amounts. It lowers the trading price of the stock so that more investors can buy the shares. Further, the board will seek approval of shareholders for increase the borrowing powers of the company from existing Rs 50,000 crore to Rs 75,000 crore, the filing added.
Shares of Muthoot Finance were trading at Rs 1,124.20 apiece on BSE, up by 1.40 per cent over its previous close.
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