Shares of TTK Prestige hit a record high of Rs 10,586 as they zoomed 20 per cent on the BSE in Tuesday’s intra-day trade after the company said it plans to consider the proposal of stock split on October 27. The stock surpassed its previous high of Rs 9,579.95 touched on July 5, 2021.
At 10:35 am, TTK Prestige was trading 14 per cent higher at Rs 10,025, as compared to a 0.19 per cent rise in the S&P BSE Sensex. A combined around 145,000 equity shares have changed hands on the NSE and BSE so far.
In addition to the earlier announcement dated September 20, 2021, to consider un-audited financial results for the quarter and half year ended September 30, 2021, TTK Prestige on Monday, after market hours, informed that the board will also consider matters related to sub-division/split of equity shares of the face value of Rs 10 each of the company in such manner as the board may determine.
A stock split is generally done to make the scrip more affordable for small retail investors and increase liquidity. It refers to splitting the face value of the shares of companies, wherein the number of shares of the company increases but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.
As of September 30, 2021, TTK Prestige had 13.86 million outstanding equity shares, the shareholding pattern shows. The promoter and promoter group held 70.41 per cent holding in the company while 29.59 per cent (4.1 million equity shares) stake was held by public shareholders, which includes, mutual funds (13.11 per cent), foreign portfolio investors (9.94 per cent) and individual shareholders (5.14 per cent), data shows.
With increased mobility and optimistic outlook on the consumer confidence index, analysts at HDFC Securities expect consumer durables companies to continue with their growth momentum. “We believe improving housing activities and resumption of Capex would sustain strong revenue traction in the coming quarters. Leading companies have already taken price hikes to pass on most of the costs; however, continued raw material inflation remains a concern,” the brokerage firm said in a sector-specific report.