KPR Mill hits new high on stock split proposal

The stock hit a record high of Rs 1,242 has been more-than-doubled from its 52-week low of Rs 620 hit on Feb 17, 2016 in intra-day trade.

KPR Mill hit a new high of Rs 1,242, up 4% on the BSE in intra-day trade, after the company announced that its board will meet on October 5, 2016 to consider stock-split proposal.

“The board of directors of the company is scheduled to be held on October 05, 2016, to consider the subdivision of equity shares of the company of face value of Rs 10 each,” KPR Mill said in a BSE filing.

The stock of textiles manufacturer has more-than-doubled from its 52-week low of Rs 620 hit on February 17, 2016 in intra-day trade. The S&P BSE Sensex was up 22% during the same period.

The company has total equity shares of 37.68 million shares, of which 75% or 28.24 million shares held by the promoters. The remaining 9.43 million shares held by mutual funds (4.61 million), individual shareholders (2.85 million) and foreign portfolio investors (1.15 million).

A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed.

At 11:42 am, the stock was up 2% at Rs 1,209 on the BSE. A combined 6,648 equity shares changed hands on the counter on the BSE and NSE so far.