1:10 Stock Split, 1st Ever: Not IRFC Or RVNL, But Zero Debt Penny Railway Stock Falls 36% YTD Before Splitting

A railway company with penny stock status as its market cap is below Rs 1,000 crore, is going to split-up in the ratio of 1:10. This will be the company's first ever stock split. However, ahead of splitting, the stock has witnessed notable downside in 2024 so far. YTD, the stock dipped over 36%. Among positives is that the company is debt-free. Who is it? Not IRFC or RVNL who are the largecap railway PSU giants.

K&R Rail announced its first-ever stock split in the ratio of 1:10. This means that the company will sub-divide its 1 existing equity share having a face value of Rs 10 each into ten smaller shares having a face value of Re 1 each fully paid-up.

K&R Rail said the Record Date for subdivision of equity shares will be intimated to the Exchanges subsequently, after the approval of the resolution for sub-division by the shareholders at EGM.

The reason behind the stock split is to enhance the company's liquidity and encourage the participation of small investors by making it more affordable.

The company is expecting to complete its stock split action in approximately 3 months from the date of receipt of approval from the shareholders of the company.

K&R Rail Engineering was founded in 1998 with a vision to cater to the ever growing demand for Mass Transportation & Bulk Logistics of Goods & Materials through the Indian Railway networks.