Godrej Properties surges as board approves stock split

The board of the Mumbai-based developer has approved sub-division of equity shares from face value of Rs 10 per share to face value of Rs 5 per share.

Godrej Properties has moved higher by over 3% at Rs 532 after the board of Mumbai-based real estate developer said its board of directors has approved stock-split.

“The board of directors of the company at its meeting held on March 23, 2013, has approved the proposal to sub-divide the equity shares of nominal value of Rs 10/- each of the company into two equity shares of nominal value of Rs 5/- each from the record date to be announced after the proposal is approved by the members of the company,” the Mumbai-based real estate developer said in a BSE filing.

The company will also seek approval of the members for sub-division of shares by way of postal ballot, it added.

Companies usually split their stock if they realize that their stock is trading far above their peers’ stock or if the prices of individual shares get too expensive. The value of a shareholder’s stake will not change due to splitting. You will just own double the stock at half the price.

The stock opened at Rs 525 and hit a high of Rs 534 on the NSE. A combined 13,239 shares have changed hands on the counter so far on NSE and BSE.