Multibagger Servotech shares hit upper circuit after announcing stock split
Servotech announced a sub-division of its equity shares in 1:2 ratio to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market.
Shares of Servotech Power Systems hit an upper circuit of 5 per cent during the early trading session on Friday after the company announced the sub-division of its equity shares. It is the second time in the current calendar, when the company has announced to split its equity shares.
Servotech announced a sub-division (split) of its equity shares in 1:2 ratio to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market, via an exchange filing on Thursday. It means each share of the company with a face value of Rs 2 each will be divided into two stocks with a face value of Re 1 each.
The company will also alter its capital clause in the memorandum of association (MoA) of the company for the same. The company will hold its extraordinary general meeting (EGM) of the members of the company on 22nd June, 2023 (Thursday) to seek the approval of the shareholders for the same. The record date for the same will be announced later, the filing added.
Following the announcement, shares of Servotech Power Systems hit an upper circuit of 5 per cent to Rs 93.05 on Friday, commanding a total market capitalization of Rs 989.37 crore. The scrip had settled at Rs 88.65 in the previous session on Thursday.
Shares of Servotech Power Systems have delivered multibagger returns to the investors. From its 52-week lows of Rs 11.4 on July 26, 2022, the stock has rallied over 715 per cent. In the last six months, the stock has gained 201 per cent, while it has gained 190 per cent in the year 2022 so far. Even in the last one month, the stock has gained about 63 per cent.
Prior to this announcement, the company had split its equity shares in 1:5 ratio in February this year. Then, the shares with the face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This is the second split announced by the company in 2023.
Servotech Power Systems reported an increase of 363 per cent in the net profit at Rs 6.05 crore for the quarter ended on March 31,2 023. The company clocked an revenue from operations at Rs 115.3 crore for the given quarter. The company reported an EBITDA of Rs 9 crore, 216 per cent higher than the year ago period.
New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products and medical devices in the country. It also manufactures and distributes EV charging solutions, solar products and medical devices.
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Published on: May 26, 2023, 11:18 AM IST
Posted by: Tarab Zaidi, May 26, 2023, 10:31 AM IST