IEX gets shareholders' nod for share split; to hike FII stake to 49 pc

Indian Energy Exchange (IEX) has received shareholders' nod for splitting equity shares and to increase shareholding of FPI/FII to 49 per cent from existing 24 per cent in its annual general meeting held Tuesday.

The special resolution for sub division of the nominal value of equity shares of the company from the existing nominal value of Rs 10 each to Rs 1 each fully paid up, resulting in issuance of 10 equity shares of Rs 1 each, was approved by the shareholders by requisite majority, a BSE statement said.

According to the statement, after the share split the paid up capital will be intact. This is done to have more participation from the investors in the scrip and in order to increase the liquidity and make the equity shares of the company more affordable to the small investors.

Besides another special resolution to increase the limit of total shareholding of all registered Foreign Portfolio Investors (FPIs)/Foreign Institutional Investors (FIIs) put together from 24 per cent up to 49 per cent of the paid-up equity share capital of the company was also approved by the requisite majority.

The move is in order to attract the foreign investments and to make space for the FPIs/FIIs to invest in the equity share capital of the company. This would result in widening the investor base of the company, facilitating /benefiting the shareholders and the company.

The shareholders also approved the proposal for ratification of Pre-IPO Employees Stock Scheme (ESOP). The companies are required to get ESOP scheme ratified by shareholders post the listing of the company. Accordingly, the company placed the existing ESOP scheme before the shareholders for the Sebi compliance requirement, it added.