Servotech Power tumbles 5% on stock split

Servotech Power Systems Ltd has declined 5 percent after fixing July 28 as the record date for the purpose of subdivision (split) of equity shares.

At 1:35 pm, Servotech Power Systems was quoting at Rs 150, down 5 percent from the previous day’s close on the National Stock Exchange. The company is a multi-bagger on the exchanges after giving a return of more than 1,000 percent in the last one year.

The current face value of the stocks is 2.

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Every publicly traded company possesses a fixed quantity of shares that are currently available in the market. A stock split refers to the deliberate action taken by a company’s board of directors to augment the total number of shares available by distributing additional shares among existing shareholders. For example, in a 2-for-1 stock split, a shareholder receives an additional share for each share held.

If approved, this will be the third time this year that the company has announced a stock split. In May, Servotech announced a sub-division (split) of its equity shares in a 1:2 ratio to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market. In February, shares of the company hit the upper circuit of 5 per cent on NSE as it turned ex-split. According to an exchange filing by the company, each share of the Delhi-based company was sub-divided into a ratio of 5:1.

The company is engaged in the end-to-end manufacturing, procurement and distribution of a range of high-end yet advanced solar products, medical devices as well as energy-efficient lighting solutions. Its competitors are Siemens, BHEL, Suzlon Energy, Hitachi, CG Power among many more.

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