BEML on July 21 announced that its board has approved a stock split in the ratio of 1:2. This means that every single share held by its eligible shareholders will be split into two, without changing the overall value of their holding.
In an exchange filing, BEML announced that its board of directors has considered and approved the split of one existing equity share of the company with a face value of Rs 10 each into two equity shares with a face value of Rs 5 per share.
The record date to determine the eligibility of the shareholders set to receive the payment is yet to be announced. If approved, this will be the first stock split conducted by the company.
What it means for shareholders?
If a shareholders owns 10 share of BEML worth Rs 100 each, he will own 20 shares of the company after the stock split, with each share being worth Rs 50. However, the total worth of his holding will remain unchanged at Rs 1,000.
BEML shares were trading in the red in the afternoon. The shares were down over 0.6 percent to hover around Rs 4,374 apiece. The shares have so far fallen nearly 6 percent in the past five days, and over 8 percent in past one month. The stock is however up over 6 percent in 2025 so far.
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BEML on May 23 reported a net profit of Rs 288 crore for the fourth quarter of the financial year 2025. This marks a jump of nearly 12 percent from the Rs 256.8 crore net profit reported in the corresponding quarter of the previous financial year.
The company's revenue from operations meanwhile rose over 9 percent to Rs 1,652.53 crore for the quarter under review. It had earlier reported revenue from operations at Rs 1,513.65 crore for Q4 FY24.
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