1:2 Stock Split: Mutual Funds Darling Electric Share Nears 1-Year High Ahead Of Splitting Into Two Shares

Power stock, Bharat Bijlee has witnessed a buying trend after it received approval for shares split in the ratio of 1:2. One existing share price of Bharat Bijlee which is at Rs 5,868.05 apiece, will be trimmed into two new shares. Soon, the number of equity shares in investors' accounts will rise, while Bharat Bijlee will become cheaper making it even more attractive for new and existing investors. Already a multi-bagger, Bharat Bijlee's share price is nearing its 52-week high.

Bharat Bijlee Share Price:

On BSE, Bharat Bijlee's share price ended at Rs 5,868.05 apiece, up by 1.13% with a market cap of Rs 3,316.36 crore. On Monday, the stock touched an intraday high of Rs 5,910 apiece, which was closer to its 52-week high of Rs 6,080.00 apiece.

From its 52-week low of Rs 2,395.40 apiece, Bharat Bijlee's share is up by 145%.

Bharat Bijlee's Stock Split:

The company is set to sub-divide its share price into two aka 1:2 stock split. This means a stock split of the existing 1 equity share having a face value of Rs 10 each fully paid up, into 2 (Two) Equity Shares of a face value of Rs 5/- each fully paid up, subject to such regulatory/statutory approvals as may be required and the approval of Members of the Company, through Postal Ballot.

The Record Date for the Sub-division / Split of Equity Shares shall be decided by the Board and will be intimated to the Stock Exchanges.

The rationale for a stock split is to facilitate a larger shareholder base aid liquidity in the capital market and make the shares more affordable to small retail investors. The stock split is expected to be completed within three months.

Bharat Bijlee Earnings, Shareholding Pattern:

In Q3FY24, both FIIs/FPIs and mutual funds have increased their shareholding. FIIs/FPIs raised its stake to 2.14% as of December 31, 2023, compared to 2.07% as of September 30, 2023. While mutual funds nearly doubled their shareholding to 4.43% in Q3FY24 versus 2.27% in Q2FY24.

During the third quarter, Bharat Bijlee reported a healthy profit of Rs 29.69 crore, higher compared to Rs 23.09 crore in Q3FY23 and Rs 27.89 crore in Q2FY24. Its revenue from operations of Rs 423.74 crore in Q3FY24, also rising from Rs 388.03 crore in Q3FY23 and Rs 419.82 crore in Q2FY24. Meanwhile, total income came in at Rs Rs 433.33 crore in Q3FY24, increasing from Rs 395.12 crore in Q3FY23 and Rs 426.74 crore in Q2FY24.

Bharat Bijlee is a leading Electrical Engineering company based in India. Established in 1946, its primary business segments are Power Transformers, Projects, Electric Motors, Magnet Technology Machines, Drives and Industrial Automation solutions.

The company caters to a spectrum of industries and the builders of the nation's infrastructure: power, refineries, steel, cement, railways, machinery, construction and textiles. It also undertakes turnkey projects (switchyards) and is well positioned to provide complete 'concept to commissioning' services.

Disclaimer: The write-up highlights about share splits and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.