Shares of Hardwyn India jumped 9.95 percent to Rs 51.40 in early trade on June 5 on turning ex-bonus and ex-split. The architectural hardware manufacturer had announced sub-division of equity shares in a 1:10 ratio -- from face value of Rs 10 per share to Re 1 per share.
The issue of bonus shares has been done in a ratio of 3:1, which means if an eligible investor has 1 share as of record date (which is June 5), he would be entitled to two new shares, bringing his total holding to three.
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The company had announced the corporate actions in May.
Hardwyn India shares had closed at Rs 623.35 on June 2 (Friday). The price got adjusted for corporate actions in Monday's trade at Rs 51.40, up nearly 10 percent over Friday’s adjusted price of Rs 46.75.
Companies generally go for stock splits when the share price has risen so high that it might deter new investors. The prime intention is to improve the liquidity in the counter.
Hardwyn India last week reported a 125 per cent jump in standalone net at Rs 3.74 crore for the March quarter, compared to Rs 1.66 crore in the year-ago period.
However, revenue from operations fell 11 per cent to Rs 29.88 crore, from Rs 33.15 crore in the corresponding quarter last year.
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