Stock-splits are back in vogue

After paying hefty dividends in 2004-05, Indian promoters of companies are unleashing stock-splits.

In the first 15 days of the current month itself, as many as 19 companies have informed the Bombay Stock Exchange (BSE) about their proposal for sub-division of equity shares.

A stock-split reduces the value of the share to the extent of the split, thereby making even high priced stocks accessible to retail investors.

During April and May, 11 companies went for stock split, making it a total of 28 in the first three months of the current fiscal.

On Tuesday, Bharat Bijlee and Rajesh Exports joined the bandwagon by announcing their plans for stock-split.

The board of directors of Rajesh Exports will meet on June 21 and that of Bharat Bijlee on 29 June to consider the proposal.

The board of directors of six other six companies "" ITC, Filmcity Media, Grand Foundry, Kailash Ficom, Lahoti Overseas, Mazda and Praj Industries will meet in next few days to split the paid-up value of their equity shares.

The board of HCL Infosystems and IQMS Software have already got approval for sub-division of equity shares.

HCL Infosystems members approved the resolutions by way of postal ballot to split shares from Rs 10 paid up capital to Rs 2 paid-up.

And IQMS Software will split one equity share of Rs 10 into the ten equity shares of Rs 1 each.

In last two months April and May, eleven companies split their paid-up capital of equity shares from Rs 10 paid to lower denominations.

During the current month, Greenply Industries sub-divided its equity shares from Rs 10 paid-up to Rs 5 paid-up.

Asashi Infrastructures, Brijlaxmi Leasing, Systel Infotech, IFK Techno and Hinafil India sub-divided their equity shares from Rs 10 each to Re 1 paid up.