AB Infrabuild Limited, a prominent player in the infrastructure sector, has announced a significant move to enhance its stock's accessibility and liquidity. The company's board of directors has approved a proposal for a 1:10 stock split, subject to shareholder approval at the upcoming 15th Annual General Meeting (AGM).

Stock Split Details

The proposed stock split would divide each existing equity share with a face value of ₹10 into ten equity shares with a face value of ₹1 each. This move is designed to make the company's shares more affordable and attractive to a broader range of investors, particularly retail participants.

Rationale Behind the Split

According to the company's filing, the primary objectives of the stock split are:

1. To make shares more affordable for investors
2. To encourage greater participation from retail investors
3. To enhance the liquidity of the company's shares in the market

Key Information

Timeline and Approval Process

The stock split proposal will be presented for shareholder approval at the company's 15th AGM, scheduled for September 29, 2025, at 02:30 P.M. (IST). The meeting will be conducted through video conferencing or other audio-visual means.

AB Infrabuild expects to complete the stock split process within three months from the date of approval by the company's members. The record date for the stock split will be determined and announced after obtaining shareholder approval through the AGM voting process.

Additional Corporate Actions

In addition to the stock split proposal, the company has announced:

1. Book closure from September 23, 2025, to September 29, 2025 (both days inclusive) for the purpose of the proposed dividend and the 15th AGM.
2. A record date of September 22, 2025, for determining eligible shareholders for the dividend, subject to approval at the AGM.

Investors and stakeholders are advised to monitor further announcements from AB Infrabuild regarding the final approval and implementation of the stock split, as well as the record date for the same.

AB Infrabuild Limited has reported a stellar performance for the first quarter, with significant growth across key financial metrics.

Financial Highlights

• Net Profit: Jumped to ₹51.19 crore, up from ₹5.42 crore in the same quarter last year, marking an impressive 844.46% year-over-year increase.
• Revenue: Surged to ₹605.63 crore, compared to ₹141.50 crore in the same quarter last year, representing a 327.98% growth.
• EBITDA: Rose to ₹96.00 crore from ₹32.00 crore year-over-year, a 200.00% increase.
• EBITDA Margin: Declined to 15.87% from 22.73% in the comparable quarter.

Detailed Financial Performance

The unaudited financial results for the quarter, as approved by the Board of Directors on August 8, reveal:

Key Developments

1. Rights Issue: During the quarter, AB Infrabuild allotted 1,06,46,489 equity shares at an issue price of ₹37.50 per share on a rights basis to existing shareholders.

2. Increased Paid-up Capital: The company's paid-up equity share capital increased to ₹638.79 crore as of June 30, compared to ₹532.32 crore at the end of the previous fiscal year.

3. Appointments: The Board approved the appointment of M/s. BMB & Associates as Secretarial Auditors for a term of 5 years, and M/s. R N D & Co. LLP as Internal Auditors for the current fiscal year, subject to shareholder approval at the upcoming Annual General Meeting.

Market Impact

The significant improvement in financial performance is likely to be viewed positively by investors. However, the decline in EBITDA margin might warrant attention and could be an area for potential improvement in the coming quarters.

AB Infrabuild Limited continues to operate primarily in the infrastructure segment, as per its segment reporting under IND AS 108.

Investors and analysts will be keen to see if the company can maintain this growth trajectory in the subsequent quarters, especially given the robust performance in the current quarter.