Gujarat Ambuja Exports turns ex-split, zooms 20%; up 87% in three months

From a six-month perspective, it has rallied 140 per cent as against 37 per cent gain in the benchmark index, data show

Shares of Gujarat Ambuja Exports zoomed 20 per cent to Rs 129.90, also its 52-week high on the BSE in intra-day trade on Thursday, as the stock split and was trading at a face value of Re 1.

The company has fixed Monday, October 5, 2020, as the record date for the purpose of sub-division of equity shares of the company having face value of Rs 2 each to Re 1 each. The board of directors of the company at its meeting held on July 25, 2020 had approved the sub-division of equity shares of the company.

On rationale behind the sub-division, Gujarat Ambuja Exports said the market price of the Company's equity shares has grown steadily over the past several years owing to the Company's strong financial performance and sound asset quality. "In order to augment the affordability of the Company's equity shares and participation of the retail/individual investors and thereby facilitate more liquidity of the Company's equity shares, sub-division of equity shares was proposed," it said in a recent release.

Outruns Sensex

In the past three months, Gujarat Ambuja Exports has rallied 87 per cent as compared to 9 per cent rise in the S&P BSE Sensex. From a six-month perspective, it has rallied 140 per cent as against 37 per cent gain in the benchmark index.

Meanwhile, the management expects the demand to get to its normal level sooner than Industry in general, as the Company is a major supplier of food, feed and nutritional ingredients.

“The Government of India has also acted swiftly for containment of the pandemic and responded on economic front by injecting sufficient liquidity in financial system and implementing a large size economic package to bring the economy back on track. This should augur well for the Company too and we expect to maintain the business performance at satisfactory level looking to a challenging time ahead,” the company said in FY21 outlook.

At 12:15 pm; the stock was trading 13 per cent higher at Rs 122 on the BSE, as compared to 1.5 per cent rise in the S&P BSE Sensex. A combined 420,000 equity shares were changing hands on the counter on the NSE and BSE so far.