Powerhouse, KPI Green Energy after rising impressively in the long-term, is planning to split its equity shares. KPI stock is currently over Rs 1,880 levels, and has touched a 52-week high and low of Rs 2,109.25 and Rs 320.83 apiece respectively. KPI has never sub-divided its share price, but has a history of rewarding investors with bonus issues and dividends. A stock split is just the cherries required to make KPI Green shares attractive.
As per the regulatory filing, KPI's board of directors are scheduled to meet on Thursday, May 23, 2024, to consider and approve the proposal for alteration in the capital of the Company by subdivision/split of existing equity shares of the Company having a face value of Rs. 10/- each, fully paid up.
This will be KPI's first-ever stock split if announced on May 23.
Although the details of stock splits are yet to be known, but some of the popular stock splits ratio in the market are 1:10, 1:5, 1:2, and 1:1. But it is up to the listed companies to decide their stock splits ratio.
A 1:10 ratio means that 1 existing share will be subdivided into 10 new shares. Similarly, a 1:5 and 1:2 stock splits ratio means 1 existing per share will be split into five and two new shares. The case is the same for the 1:1 stock splits ratio as well.
Generally, share splits mean that listed companies can split their existing shares into a ratio decided by them for a host of reasons. These could be done to improve liquidity, lessen the value of the stock, make it cheaper or simply attract new buying from both existing and new investors.
The announcement of stock split also comes after when KPI announced to raise funds worth Rs 1,000 crore via issuance of equity shares of the Company ('Equity Shares') or any other equity-linked securities of the Company or other securities convertible into or exchangeable for Equity Shares by way of qualified institutions placement (including one or more qualified institutional placements in tranches) ('QIP').
The fundraising will be carried out in tranches for an aggregate amount of Rs 1,000 crore.Mumbai Investment
So far in 2024, KPI Green has rewarded investors with bonus shares and dividend.
Recently, the company has recommended a final dividend of 2% i.e. Re. 0.20 (Twenty Paisa only) per equity share of the face value of Rs.10/- each for the financial year 2023-24, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company.
Also, the record date for the final dividend will be announced in due course. For FY24, KPI has delivered the first and second interim dividends of 2.5% each valuing to Rs 0.25 per share. In 2023, the company delivered up to 28.50% dividend amounting to Rs 2.85 per share.
Additionally, KPI in February delivered a 1:2 bonus issue. The company allotted 2,00,94,203 equity shares having a face value of Rs.10/- each as bonus equity shares, in the ratio of One (1) equity share having a face value of RsSimla Investment. 10/- each for every Two (2) existing equity share having face value of Rs. 10/- each.
Ahead of stock split announcement, KPI Green shares traded at Rs 1883.85 apiece, down by 1.98% on BSE with a market cap of Rs 11,356.34 crore.
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