Shares of IRB Infra opened lower on Thursday after the board of the Engineering and construction company approved a proposal for the split of the equity shares of the company.
The board of directors at its meeting on January 4 approved the split of existing shares with face value of Rs 10 per share into 10 shares with face value of Re 1 apiece.
The company said that it will now initiate the process for shareholders’ approval as well as regulatory nods to bring the share split into effect for trading on stock exchanges.
The infrastructure major has opted for the share split in order to enhance the liquidity of stock in the capital market, to widen shareholder base and to make the shares more affordable to small investors.
Chairman & Managing Director Virendra Mhaiskar said that the move was done on the occasion of completing 25 years as a company and 15 years as a listed one.
The company has not declared the record date for the stock split, but the entire process will be completed by February 28, 2023.
IRB Infra is India’s first multinational infrastructure player in the highways segment with an asset base of over Rs 60,000 crore in 10 states across the parent company and two InvITs (infrastructure investment trusts).\
Shares of IRB Infra are trading 3.2 percent lower at Rs 309.30. The stock has gained 40 percent over the last 12 months but only 30 percent when compared to a five-year time period.
First Published: Jan 5, 2023 10:43 AM IST
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