According to an exchange filing, clean energy solutions provider Servotech Power Systems has announced record date for sub-division of its equity shares. The decision to split the face value of the shares was announced by the Delhi-based company in May. The rationale behind the split of equity shares is to increase the liquidity of the equity shares of the company and encourage wider participation in the market.
The current face value of each share of the leading manufacturer of LED lights, solar panels and UVC disinfection products is Rs 2. As per the filing, the face value of each share will be sub-divided from Rs 2 to Rs 1.
“The register of members and share transfer books will remain closed from July 20 to August 4 for ascertaining the eligibility of shareholders for the purpose of sub-division (split) of equity share of face value Rs 2 each into 2 equity shares of face value Rs 2 each. Each is priced at Rs 1,” the power equipment company said in a filing.
It added, “July 28 has been fixed as the record date for this purpose.”
The filing said that after the sub-division, the total number of equity shares of the company in the secondary market would increase to 22 crore.
This is the second sub-division of the company within a year. Earlier in February the face value of the smallcap stock was sub-divided from Rs 10 to Rs 2.
Servotech is primarily engaged in providing energy-efficient lighting solutions and manufacturing and distributing an array of Solar Products. It also provides innovative technology-enabled solutions in the electric vehicle sector. With the demand for EVs rising, the company hopes to capture a significant market share.
The company had reported a multi-fold increase in consolidated net profit for the March quarter 2022-23 at Rs 6.05 crore on the back of higher revenue.