HDFC Bank announces stock split in 1:5 ratio
Private sector lender, HDFC Bank, on Monday announced a stock split in the 1:5 ratio aimed at attracting more retail investors into its owner base.
By PTI | Updated:
MUMBAI: Private sector lender, HDFC Bank, on Monday announced a stock split in the 1:5 ratio aimed at attracting more retail investors into its owner base.
"As share prices get higher in absolute terms, a retail investor finds it too high...this (stock split) will make it more appealing to retail investors," the bank's Executive Director, Paresh Sukhtankar, told reporters on a conference call today.
The bank's scrip closed 1.89 per cent lower at Rs 2,315.70 at the Bombay Stock Exchange today. The number of retail investors in the bank's total shareholders has come down to around 10 per cent over the past several years.
The Board of Directors of the bank, which met today to discuss the bank's performance in the just concluded financial year, took a decision to split every share of the bank into five. Under the new scheme, the face value of every share will come down to Rs 2 from Rs 10.
The record date for the same will be determined shortly and the split will have to be approved by the bank's shareholders and get other statutory go-aheads.
Meanwhile, in another good news for investors, the bank today announced a dividend of Rs 16.50 per share versus the Rs 12 per share it had distributed last year.
"As share prices get higher in absolute terms, a retail investor finds it too high...this (stock split) will make it more appealing to retail investors," the bank's Executive Director, Paresh Sukhtankar, told reporters on a conference call today.
The bank's scrip closed 1.89 per cent lower at Rs 2,315.70 at the Bombay Stock Exchange today. The number of retail investors in the bank's total shareholders has come down to around 10 per cent over the past several years.
The Board of Directors of the bank, which met today to discuss the bank's performance in the just concluded financial year, took a decision to split every share of the bank into five. Under the new scheme, the face value of every share will come down to Rs 2 from Rs 10.
The record date for the same will be determined shortly and the split will have to be approved by the bank's shareholders and get other statutory go-aheads.
Meanwhile, in another good news for investors, the bank today announced a dividend of Rs 16.50 per share versus the Rs 12 per share it had distributed last year.
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