Dixon Technologies said the rationale behind the stock split is to encourage wider participation of small investors and to enhance the liquidity of the equity shares at the stock market.
Ace investors Ashish Kacholia and Vijay Kedia held more than 1 per cent stake in the company as of the December quarter
The company plans to go for a stock split to make shares more affordable for small retail investors and increase liquidity
In the past six months, the stock has rallied 150 per cent, as compared to a 38 per cent rise in the S&P BSE Sensex during the same period
The board has fixed September 30, 2020 as the 'record date' for sub-division of equity shares of the company from existing face value of Rs 10 each to face value of Rs 2 each
Stock split is a process, in which the company divides its existing shares into multiple shares to boost the liquidity of the shares
Though a split makes the stock more affordable for the investors, experts say investors should also look at the company's fundamentals before investing
Of the 11 companies that did splits during FY16, seven underperformed the market