Servotech shares rise 16%; company announces record date for stock split

Shares of Servotech Power Systems hit an upper circuit of 5 per cent during the trading session on Wednesday after the company announced the record date for sub-division of its equity shares. It will be the second time in the current calendar, when the company will split its equity shares.

The company board has fixed July 28, 2023, Friday as the record day for the sub-division of its equity shares, the company said in an exchange filing. The company will split its equity shares in 1:2 ratio, which means that shares with face value of Rs 2 each will be split into two shares with a face value of Re 1 each.

NSE-listed Servotech had announced a sub-division (split) of its equity shares in May 2023 to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market, the company said through a separate exchange filing earlier.

Following the announcement shares of Servotech Power hit an upper circuit of 5 per cent to Rs 165.75 on Wednesday. The stock has gained more 16 per cent in the last two trading sessions from its price at Rs 142.90 on Tuesday. The company was commanding a total market capitalization of more than Rs 1,760 crore.

Shares of Servotech Power System have delivered multibagger returns to investors. The stock has gained about 1,200 per cent in the last one-year year, while it has zoomed about 3,200 per cent since September 2021. The stock has rallied more than 400 per cent in the year 2023 so far.

Prior to this announcement, the company had split its equity shares in 1:5 ratio in February this year. Then, the shares with the face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This is the second split announced by the company in 2023.

New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products and medical devices in the country. It also manufactures and distributes EV charging solutions, solar products and medical devices.

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