Rs 15/Share Dividend, 1:2 Stock Split: PSU Defence Stock Sets Record Date For Sub-Division Of Shares

Board of directors of large cap PSU company operating in Defence sector, Hindustan Aeronautics Ltd (HAL) on Tuesday approved 1:2 stock split and declared Rs 15 per share dividend for the financial year 2022-23. The company fixed September 29, 2023 as the record date for sub-division of shares. Current market price of HAL share is Rs 3664.00 per share with intraday fall of 0.98% till 2:46 pm. Hindustan Aeronautics shares offered 102% return in last 1-year. Check details below:

What Is Stock Split? When a company announces stock split, it leads to increased number of shares of that company with the market cap remaining same. The current shares split with the underlying value remaining similar. When the number of shares rise, the price per share declines. The companies go for stock split to make the share more affordable for investors who may find it difficult to buy the shares of that company due to high prices.

HAL Sets Record Date For Stock Split: According to the regulatory filing of HAL, the board recommended, "the sub-division/ stock split of existing 1 (one) Equity Share of face value of Rs. 10/- each fully paid up into 2 (Two) Equity Shares of Rs. 5/- each fully paid up. The Record Date for the purpose of sub-division of equity shares shall be Friday, the 29th September, 2023, if sub-division is approved by the shareholders at AGM. Further details on sub-division in terms of SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 9, 2015 are attached as Annexure A."

HAL Recommends Dividend: As per the BSE filing of HAL, the board of directors recommended, "a final dividend of Rs 15/- per equity share of Rs. 10/- each fully paid up 150% for the Financial Year 2022-23, which shall be paid to the shareholders within 30 days from the date of its approval. Further information in this regard including record date etc. shall be submitted with the concerned Stock Exchanges in due course."

HAL Stock Performance & Return: Current market price of HAL stock is Rs 3664.00 per share with intraday fall of 0.98%. Its 52-week high price is Rs 3950.00 per share and 52-week low price is Rs 1718.00 per share. Its market capitalisation is Rs 1,22,651.66 crore. HAL share offered 44% return YTD, 102% return in last 1-year, 253% return in last 2-years, and 380% return in last 3-years.

HAL Financial Performance: Earlier this year on May 12, 2023, Hindustan Aeronautics Ltd (HAL) declared its consolidated net profit at Rs 2831 crore for the fourth quarter of FY23, declined 9%. The company reported Rs 3105 crore consolidated net profit in the same quarter last year. Meanwhile, revenue from operations soared 8% year on year (YoY) to Rs 12, 494 crore the quarter ended March as against Rs 11,558 crore declared in the corresponding quarter last year.

About: HAL is actively engaged and is contributing to the space programmes of the country. A separate Aerospace division was established in 1988. HAL is currently meeting the requirements of structures for aerospace launch vehicles and satellites of ISRO through the Division. Infrastructure has also been set up to undertake complete assembly of the strap-on L-40 stage booster. Structures for GSLV Mk.III, Mars Mission and Human crew module have been supplied by HAL to ISRO. HAL is also setting up dedicated facility for manufacture of cryogenic engines.

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