38.6c New Delhi, India, Sunday, April 21, 2024
Business

Muthoot Finance to Consider Stock Split for Higher Liquidity of Shares

By Harshil Jain      06 July, 2020 04:25 PM      0 Comments
Muthoot Finance to Consider Stock Split for Higher Liquidity of Shares

On Friday 3 July 2020, Muthoot Finance, in its regulatory filing, said that the company is planning to approve a proposal for subdivision/ stock split of equity shares of the company, subject to shareholders’ approval, in a Board meeting that is scheduled to be held on 18 July 2020.

The non-banking financing company (NBFC) will also seek approval of its shareholders for increasing the borrowing powers of the company. The proposal would be set up to increase that amount from existing Rs 50,000 crore to Rs 75,000 crore, it added.

Muthoot Finance Ltd. is an India based Finance Corporation that was incorporated as a private company on 14 March 1997. It is known as the world’s largest gold financing company. Apart from this, the company also deals in foreign exchange services, money transfers, wealth management services, travel, and tourism services, and sells gold coins at Muthoot Finance branches. It is headquartered in Kerala and operates from over 4,400 branches across India. The company also operates in the United States, the United Kingdom, and the United Arab Emirates. It falls under the umbrella entity of Muthoot Group and is listed under both National Stock Exchange and Bombay Stock Exchange.

In the stock split process, the company divides its existing shares into multiple shares in order to boost the liquidity thereof. It causes a decrease in the market price of individual shares; however, the market capitalization of the company remains constant. Generally, the practice is followed when the market price per share is very high and it stymies small investors from investing in such stocks.

Earlier, Office Depot Inc., a leading provider of business services, products and technology solutions, announced that it will resort to reverse stock split with effect from 30 June 2020. The Florida based tech company works on a fully integrated B2B platform with its distribution channel comprising 1300 stores, online presence, and other sales professionals. 

Altus Midstream, Intrepid, Golden Matrix Group, and Genufood Energy Enzymes Corp. are some of the other entities that have announced the reverse stock split in the recent past.

After the announcement, the share price of Muthoot Finance gained 3.8 percent in a single day. The price rose to Rs 1,150.8 compared to the previous close at Rs 1,108 on the Bombay Stock Exchange. In the last four days, the stock has gained 5.5 percent. A total of 0.94 lakh shares were traded, amounting to a turnover of Rs 10.71 crore. The firm’s Market Cap rose to Rs 45,970 crore. Also, the stock has gained 79.87 percent and risen by 50.46 percent since the last year.

The non- banking financing company had posted a consolidated net profit of Rs 2,103 crore in the financial year 2018-19. On 19 June 2020, the stock hit an all-time high of Rs 1,283.95, after the company announced 59 percent growth in Quarter-4 profit. During the quarter, it's gold loan assets increased by Rs 3,113 crore.



Share this article:



Leave a feedback about this
TRENDING NEWS

sc-orders-medical-examination-of-yr-old-rape-survivor-seeking-to-terminate-her-week-pregnancy
Trending Judiciary
SC orders medical examination of 14-yr-old rape survivor seeking to terminate her 28-week pregnancy

Supreme Court orders medical examination of 14-year-old rape survivor seeking termination of 28-week pregnancy. Decision to be made after evaluating impact on her health.

20 April, 2024 11:00 AM

TOP STORIES

need-to-safeguard-judiciary-from-unwarranted-pressures-21-ex-judges-write-letter-to-cji
Trending Legal Insiders
Need to safeguard judiciary from unwarranted pressures: 21 ex-judges write letter to CJI

21 ex-judges write to CJI Chandrachud urging protection of judiciary from pressures undermining its integrity and autonomy.

15 April, 2024 12:17 PM
sc-notice-to-ed-declines-early-date-on-plea-by-delhi-cm-arvind-kejriwal-against-arrest
Trending Judiciary
SC notice to ED; declines early date on plea by Delhi CM Arvind Kejriwal against arrest

SC issues notice to ED, declines early hearing on Delhi CM Kejriwal's plea against arrest in liquor scam.

15 April, 2024 03:08 PM
call-for-chapters-gender-based-violence-and-religion
Trending Law School
Call For Chapters: Gender-Based Violence and Religion

Calling For Book Chapters: As an editor, Dr. Amit Anand, Assistant Professor, School of Legal Studies, REVA University, Bengaluru, is inviting people to contribute to a book, entitled "Gender-Based Violence and Religion." This book is scheduled to be published by Cambridge Scholars Publishing.

15 April, 2024 04:21 PM
cannot-stop-any-public-rally-bombay-hc-says-on-allegation-that-ram-navami-processions-deliberately-pass-through-muslim-majority-areas
Trending Top Stories
Cannot stop any public rally, Bombay HC on allegation that Ram Navami processions deliberately pass through Muslim-majority areas

The Bombay High Court calls upon the Maharashtra Police to ensure that no law and order issues occur during a Ram Navami rally in a Muslim-majority area in Mumbai.

15 April, 2024 06:36 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email