Private sector lender
HDFC Bank on Wednesday announced sub-division of stocks in the ratio of 1:5 in order to encourage wider retail participation in the company.
Bank's shareholders approved the stock split in
company's share in 1:5 ratio , that is one share of Rs 10 will be split into 5 shares of Rs 2 each, at its 17th Annual General Meeting held in Mumbai.
"Shareholders approved...subdivision of one equity share of nominal value of Rs 10 each into five equity shares of nominal value for Rs 2 each," the lender said in a communique to the National Stock Exchange (NSE).
Stock split is generally done when the shares of a firm goes up too high. The split helps the share price to come down thereby making it easier for retail investors to invest in the stock.
The scrip of the bank closed at Rs 2,545.05 per share at the Bombay Stock Exchange today, up 0.18 per cent over the previous day's closing.
The bank's Board had approved the sub-division of equity shares on April 18.
Shareholders also approve the appointment of C M Vasudev as a non-executive Chairman of the company for a period of three years starting from August 26, 2010.
HDFC Bank commenced operations as a scheduled commercial bank in January, 1995.
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