Stock Split: This Stock Will Split Into Five, Board Approves Stock Split – Check Details

Capital India Finance announced the first stock split since the company's inception, following an announcement by the Board of Directors. 

Capital India Finance Stock Split: Details

Capital India Finance's Board of Directors considered and approved a “sub-division / split of 1 (one) equity share of the Company having face value of INR 10 (Indian Rupees Ten only) each in the authorized, issued, subscribed and fully paid‐up equity share capital into 5 (five) equity shares having face value of INR 2 (Indian Rupees Two only) each, subject to the approval of members of the Company. The record date for the purpose of the sub-division/ split of equity shares shall be decided post approval of the shareholders and the same will be intimated in due course.”, in their meeting held on December 24, 2024.

This means every share worth Rupees 10 will be split into five shares of Rupees two each. The filing also said that authorised share of the company at Rs 214 Crore will be divided into 102 crore shares of Rupees two each.

Post the split, the company will apply for a stock market listing on the National Stock Exchange. 

The stock market listing is subject to approval of the terms and conditions by e-voting. These include voting in favour of the share split, and stake divestment. The stake divestment includes selling 100  per cent of its ownership inn Capital India Home Loans.

Capital India Finance Stock Split: Reason

The reason behind the 5:1 stock split is “to facilitate the participation of retail and potential investors to buy the equity shares of the company at an affordable market price and enhance the liquidity of the company's equity shares”, said Capital India Finance in a stock exchange filing. 

This means Capital India Finance is making the shares more affordable to smaller retail investors.

In the September 2024 quarter, Capital India Financials revenue from operations was Rs 52.90 crore, rising 3.33 per cent from Rs 51.19 crore in the September 2023 quarter.

In Q2FY25, the company's net profit was Rs. 3.21 crore, a 42.31 per cent drop from Rs. 5.57 crore in Q2FY24. In the September 2024 quarter, EBITDA was Rs. 23.23 crore, a 19.59 per cent fall from the September 2023 quarter's Rs. 28.89 crore.

Capital India Finance's shares closed Tuesday's trading session on the BSE 0.91 per cent higher at Rs 189.30 per share, with a market capitalisation of Rs 1,471.51 Cr. 

Capital India Finance is a non-banking financing firm that offers financial services and has its headquarters in Mumbai. The company is dedicated to offering a broad range of financial services and products.