Kolkata (KOAA): Railway wagon maker Titagarh Wagons has decided to split its stock, making its shares more affordable to small investors.
The city-based company, in a filing with the Bombay Stock Exchange, today announced that its board of directors had “approved sub-division of equity shares of Rs 10 each into equity shares of face value of Rs 2 each, subject to the consent of the shareholders and alteration of memorandum & articles of association of the company to reflect the same as well as bring the said constitutional documents in line with the provisions of the Companies Act, 2013”.
Vice-chairman and managing director Umesh Chowdhary said the stock split was aimed at making the shares affordable to small investors and provide more liquidity in the market.
The company’s share price has significantly gone up from Rs 115.1 apiece on April 1, 2014, to Rs 706 at the end of today’s trade on the Bombay Stock Exchange. The scrip today closed with a gain of 5.02 per cent over the previous close.
The board has also given in-principle approval to raise Rs 250 crore through the issue of equity or equity-related instruments also subject to shareholder’s approval.
Chowdhary said the board’s decision was an enabling resolution to raise funds in the future.
He added that the railway budget presented last month had opened up significant opportunities for private players and the company might evaluate investment scopes.
The company is also looking to make a headway into the defence sector. At present, it has an order book of around Rs 150 crore.
Chowdhary said that group firm Cimmco could cater to the defence business in a bigger way in the future.
The company’s board has approved an employee stock option scheme to grant 1 lakh options (each option exercisable into one equity share) to eligible employees at Rs 221 per share.