Gayatri Projects extends gain on stock split plan

The stock was up 5% to Rs 657 in intra-day, extending Monday's nearly 5% gain on the BSE

Gayatri Projects was up 5% to Rs 657 in intra-day, extending Monday’s nearly 5% gain on the BSE, after the company said the board will meet on December 26, to consider the stock split.

“The meeting of the board of directors of the company is scheduled to be held on December 26, 2016, to consider and approve the sub-division of the nominal value of the equity shares of Rs 10 per share to Rs 2 per share,” Gayatri Projects, the company engaged in construction & engineering business said in a BSE filing.

A stock split is a decision by a company’s board to increase the number of shares that are outstanding by issuing more shares to current shareholders. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed.

However, in calendar year 2016, the stock had underperformed the market by 19% as compared to 1.4% rise in the S&P BSE Sensex till Friday, December 16, 2016.

At 10:17 am; the stock was up 3% at Rs 646 on the BSE against a marginal 0.10% rise in the benchmark index. A combined 19,926 shares changed hands on the counter on the BSE and NSE.