1:10 Stock Split Rejected? Railway Stock Rises Over 12% In 2 Sessions; Do You Own Any?

K&R Rail Engineering is a smallcap railway stock, trading on BSE Ltd. For two consecutive sessions, the railway stock has skyrocketed by more than 12% on BSE. One of the much-awaited corporate actions from this railway stock was its first-ever stock split in the ratio of 1:10. However, as per the latest development, it looks like the majority of shareholders have voted to not go ahead with the stock split.

K&R Rail Engineering Share Price:

After market hours, K&R Rail's stock price ended at Rs 437.80 apiece, up by 1.81% on BSE with a market cap of around Rs 1,248.14 crore. However, during the session of December 5th, the stock touched its intraday high of Rs 451 apiece.

In the previous session, the stock gained by over 7.1% on BSE. In two sessions, K&R Rail stock has rallied by 9.10% from December 5t closing price, and by 12.4% from the intraday high of Rs 451 apiece. Two days ago, the stock was merely at Rs 401.25 apiece.

K&R Rail Engineering Stock Split:

On July 13, the company's board considered a sub-division/stock split of existing 1 (one) Equity Share of face value of Rs. 10/each fully paid up into 10 (10) Equity Shares of Re. 1/- each fully paid up. The stock split ratio was 1:10.

However, during the 41st annual general meeting (AGM) which was held on September 9, 2024, the company received merely 0.019% of the total votes cast in favour of stock split. About 99.981% of the total voters of shareholders, voted against the stock split resolution.

Hence, in its filing, K&R Rail Engineering said, the "special resolution was turned down and rejected by the general meeting, as the special resolution did not secure the required majority."

During Q2FY25, the company recorded consolidated revenue from operations of Rs 161.16 crore, while profit after tax stood at Rs 7.57 crore in the quarter. The performance was lower compared to revenue and PAT of Rs 163.28 crore and Rs 13.11 crore in Q2FY24.

About K&R Rail Engineering:

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.