Shares of HEG Ltd gained 10% in early deals today after the graphite electrode maker said it has fixed October 18 as the record date for determining entitlement of shareholders for a stock split.
HEG shares gained 10.14% to Rs 2544 on Wednesday against the previous close of Rs 2309.75 in the previous session. Market cap of the firm climbed to Rs 9679 crore on BSE.
The company's board cleared stock split in the middle of August this year. The firm will split shares worth Rs 10 each into to five equity shares with a face value of Rs 2, the statement said.
"Sub-division/ split of each equity share of face value of Rs 10/- (Rupees Ten only) each, fully paid-up into 5 (Five) equity shares of face value of Rs 2/- (Rupee Two only) each, fully paidup by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought tlu·ough Postal Ballot. The Record Date for sub-division/ split of existing equity shares will be intimated in due course," said the firm in a commuinication to bourses.
HEG is a manufacturer of graphite electrodes, which are used as a raw material in steel production via the EAF route, significantly less polluting (three-fourths reduced emission) vs. the more traditional blast furnace or BF route.