Asia's largest coffee plantation company Tata Coffee today said its board has approved a proposal to split company's equity shares from the existing face value of Rs 10 per share to Re 1 per share.
However, the stock split is subject to the approval of company's shareholders which is proposed to be obtained through postal ballot and e-voting, the company said in a BSE filing.
Stock split or sub-division of equity shares is usually done by the companies with the purpose of infusing liquidity by making shares affordable for retail investors who could not invest earlier because of the high stock price.
On November 17, the company had informed that board will consider the proposal of stock split of its equity shares.
Tata Coffee had reported manifold increase in consolidated net profit at Rs 32.36 crore for the second quarter ended September 30, on account of better performance by the company's US subsidiary.
Shares of the company today closed at Rs 977.25 apiece on BSE up by 0.62 per cent.
