Shares of the Indian Steel Exchange rose more than 3% to Rs 23 per share in BSE trading on Tuesday, as the metal stock began a 1:10 share split a day before the stock’s record date.

The company has set Wednesday, July 13, 2022, as the record date for a split/dividend at a par value of Rs 10 per share; 10 par value shares will be paid in full, Indian Steel Exchange suggested in an exchange filing Pay 1 rupee per person.

The motion to split the company’s shares from a par value of Rs 10 per share into the equity of Rs 1 per share was approved by the board in May, subject to a general meeting of all company members.

The company said the stock split decision was made to facilitate a more extensive shareholder base to increase liquidity in capital markets and make shares more affordable for small shareholders.

A stock split increases the number of outstanding shares by issuing more to existing shareholders. A stock split lowers the market price of an individual stock but does not result in a change in the company’s market value.
If a company’s price level is very high, it makes a stock split decision to make its stock more affordable, thereby increasing stock liquidity.

Steel Exchange India Limited (SEIL) is the flagship company of Vizag Profiles Group. Founded in 1999, SEIL is a leading manufacturer of TMT rebar under the brand name “SIMHADRI TMT”. The company has the most significant private integrated steel mills in the two Telugu-speaking states of Andhra Pradesh and Telangana. SEIL is a TMT rebar supplier serving private and public sector infrastructure companies/organisations.