1st Ever 1:5 Sub-Division (Split): 25th July Record Date; Check Tata-Mutual Fund Backed Stock

With its headquarters located in Pune, Maharashtra, KSB Limited was established in 1960. Monobloc & mini monobloc pumps, hydropneumatic systems, check valves, industrial gates, globes, centrifugal end suction pumps, high-pressure multistage pumps, submersible motor pumps and control valves are among the expertise areas of KSB. KSB Limited and MIL Controls Ltd. are two of KSB's Indian enterprises. KSB, a prominent global producer of pumps, valves, systems, and control valves, operates in India. It supplies the market through an extensive distribution network consisting of four zonal offices, fourteen branch offices, eight hundred authorised dealers, six service stations, two hundred authorised service centres, and twenty godowns.

As the firm announced its first-ever stock split in a 1:5 ratio, with July 25th acting as the record date, KSB, a mid-cap company featured in the BSE 500 index with a market valuation of Rs 17,145.30 Cr, is expected to be in the spotlight going forward. The stock split announcement of the company came after paying a final dividend of Rs 17.50 for FY24 to the eligible shareholders for which the ex-dividend was 13th June. The Board recommended a 175% dividend for the shareholders at their meeting on February 28, 2024.

"This is to inform you that in terms of Regulation 42 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, 25th July, 2024 as the "Record date" for the purpose of sub-division (split) of its equity shares in the ratio of 1:5, i.e. 1 Equity Share of nominal value of INR 10 (Rupees Ten only) each fully paid up into 5 Equity Shares of INR 2 (Rupees two only) each fully paid up, ranking pari-passu in all respects, which was approved by the shareholders at the Annual General Meeting of the Company held on 27th June, 2024," said KSB in a stock exchange filing on Friday.

"As per the notice of 64th AGM, Board of Directors had recommended the sub-division of equity shares in the ratio of 1:5. It will make the equity shares of the Company more affordable, and it is expected to encourage participation of investors at large and therefore it is in the best interest of the investors and the Company," the management of KSB in a regulatory filing on 02nd July, 2024.
At its meeting on April 26, 2024, the Board of Directors discussed and approved the proposal for restructuring the company's share capital by splitting the current equity shares, subject to the consent of the company's members.

"It is proposed to sub-divide 1 (one) equity share having face value of Rs 10 (Rupees ten) each, fully paid-up into 5 (five) equity shares having face value of Rs 2 (Rupees two) each, fully paid-up. The new equity shares to be issued and allotted upon sub-division shall rank pari passu with the existing equity shares of the Company in all respects. With a view to encourage wider participation of small investors and to enhance the liquidity of the Equity Shares at the Stock Market, the Board of Directors recommends this sub-division. Sub-division will make the equity shares of the Company more affordable and is expected to encourage participation of investors at large and therefore it is in the best interest of the investors and the Company," said KSB in its annual report.

On Friday, the shares of KSB Ltd closed 2.22% lower at Rs 4925.70 apiece. The scrip reached a 52-week-high level of Rs 5,185.00 on (26/04/2024) and a 52-week-low level of Rs 2,014.65 on (13/07/2023). It is among the stocks in which Tata Mutual Fund - Tata Small Cap Fund held a stake of 1.47% or total shares held of 5,11,118 as of the quarter ended 31st March 2024.