JBM Auto board will consider subdivision of shares
JBM Auto share price jumped over 6% to Rs 53.80 intraday on November 22 after the company said its board would consider a stock split proposal at a meeting on December 8.
The stock of auto ancillary company has zoomed 62 per cent in past 11 trading days. It had hit a record high of Rs 979.85 on Thursday, November 18, 2021.
A meeting of the board was scheduled for December 8, 2021 to consider and approve the proposal of sub-division of the company’s equity shares having face value of Rs 5 each and matters related thereto, subject to regulatory and statutory approvals.
A stock split or subdivision is generally undertaken to make the stock more affordable to small retail investors and increase liquidity. It refers to splitting the face value of shares, in which the number of shares of the company increases but the m-cap remains the same. Existing shares split, but the underlying value remains unchanged. As the number of shares increases, the price per share goes down.
JBM Auto is engaged into the business of sheet metal components, tools & dies. The company is also an Original Equipment Manufacturer (OEM) as it is engaged in the production of passenger buses.
JBM Auto’s net profit jumped 23% to Rs 25.30 crore in the quarter ended September 30, 2021 from Rs 20.49 crore in the same quarter of the previous year.
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