Eicher Motors share price gained in early trade today after board of the firm approved a stock split in the ratio of 10:1. Eicher Motors stock gained up to 1.8% to Rs 21,835 against previous close of Rs 21,435 on BSE. Share price of Eicher Motors has risen 1.79% in the last 2 days. Total 1487 shares changed hands amounting to turnover of Rs 3.22 crore. Market cap of the firm stood at Rs 59,369 crore.
Eicher Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 23.56% in one year and lost 3.52% since the beginning of this year.
The large cap stock has risen 11.66% in one month. The board approved a stock split of existing one equity share of the face value of Rs 10 per share into ten equity shares of the face value of Re 1 each.
Expected time for share split is 2-3 months from August 11.
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"Members of the company at its 38th Annual General Meeting on August 10 approved sub-division of each existing equity share of face value of Rs 10 each into 10 equity shares of face value of Re 1 each," the Royal Enfield manufacturer said.
The record date for the purpose of sub-division of equity shares will be intimated in due course, it added. The purpose behind splitting share price is to facilitate larger shareholder base and aid liquidity, the management said, adding that the split is expected to be completed in two-to-three months from the date of approval by shareholders.
On August 11, the stock closed at Rs 21,435.75 up 0.44 percent on the BSE from its previous close. Eicher Motors, on August 13, will consider its financial results for Q1 FY21.
On May 25, the firm announced stock split plan to make the stock more affordable for the small retail investors and increase liquidity.
On June 12, the company's board approved the stock split in the ratio of 1:10 i.e. sub-division of equity shares of the company from the existing one (1) equity share of face value of Rs 10 each into ten (10) equity shares of face value of Rs 1- each.