Alkyl Amines surges 12%, hits fresh high ahead of stock split

The company got the shareholders' approval for the sub division of face value of equity shares from Rs 5 to Rs 2

Shares of Alkyl Amines Chemicals rallied 12 per cent to Rs 5,990, also its new high on the BSE in intra-day trade on Tuesday ahead of the sub division of face value of equity shares from Rs 5 to Rs 2. On Friday (March 19), the specialty chemicals maker announced that it has got the shareholders' approval for the stock split.

The company's board of directors, at their meeting held on February 2, approved the sub-division of equity share of face value of Rs 5 each fully paid up to Rs 2 each at the record date to be determined as authorized by the Board of Directors, subsequent to the approval of the shareholders through postal ballot, Alkyl Amines said.

Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity.

In the past six months, the stock of Alkyl Amines rallied 97 per cent as compared to a 33 per cent rise in the benchmark S&P BSE Sensex. In the past one year, the stock has zoomed 443 per cent against 92 per cent rise in the benchmark index. Earlier, in September 2014, the company had subdivided the face value of its equity shares from Rs 10 paid-up to Rs 5 paid-up.

The Company said it has established a leading position in domestic market and a presence in international market with a reputation for reliable service and quality products. With the growing demand for Company’s products, the board of directors had also approved the investments for enhancement of capacity for Aliphatic Amines at Kurkumbh and Pataiganga sites in Maharashtra. The company said investment of between Rs 300 crore to 350 crore required for the proposed expansion, and will finance through internal accruals.