JBM Auto board will consider subdivision of shares

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.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.