Ajmera Realty & Infra India Limited , a prominent player in the real estate sector, has announced a significant corporate action that could potentially reshape its market presence. The company's Board of Directors has approved a stock split in the ratio of 1:5, aiming to enhance liquidity and broaden its shareholder base.

Key Details of the Stock Split

The stock split, subject to shareholder and regulatory approvals, will subdivide each existing equity share of the company as follows:

This corporate action effectively multiplies the number of outstanding shares by five while reducing the face value of each share to one-fifth of its original value.

Rationale Behind the Decision

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

1. To enhance the liquidity of the company's equity shares in the stock market
2. To make the shares more affordable and accessible to small retail investors
3. To encourage wider participation by broadening the retail shareholders' base

Impact on Share Capital

The stock split will also affect the company's authorized share capital structure:

• Pre-split Authorized Capital: 15,00,00,000 shares of Rs. 10.00 each
• Post-split Authorized Capital: 75,00,00,000 shares of Rs. 2.00 each

The total authorized share capital will remain unchanged at Rs. 150,00,00,000.

Timeline and Approvals

The company expects to complete the stock split process within two months from the date of shareholders' approval, subject to obtaining necessary regulatory and statutory approvals. The record date for the sub-division of equity shares will be intimated in due course.

Financial Performance Context

While the stock split announcement is not directly related to the company's financial performance, it's worth noting that Ajmera Realty & Infra India Limited recently reported its unaudited financial results. The Board meeting that approved the stock split also reviewed these financial results.

This strategic move by Ajmera Realty & Infra India Limited reflects the company's focus on improving market accessibility and potentially increasing trading volumes of its shares. As always, investors are advised to conduct their own research and consider their financial goals before making investment decisions based on corporate actions such as stock splits.

Ajmera Realty & Infra India Ltd , a prominent player in the Indian real estate sector, has reported strong growth in presales for the first half of FY26, alongside mixed financial results for the second quarter.

H1FY26 Performance Highlights

• Presales: Increased by 48% year-on-year to ₹828.00 crore
• Revenue: Grew by 20% to ₹481.00 crore
• Collections: Surged by 52% to ₹454.00 crore
• Profit After Tax: Marginal growth of 2% to ₹71.00 crore
• EBITDA: Increased by 6% to ₹139.00 crore

Q2 Project Launches and Sales

Ajmera Realty launched two significant projects in the second quarter:

• Ajmera Manhattan 2
• Thirty3.15

These projects have a combined gross development value (GDV) of ₹2,100.00 crore.

Sales volume reached 2.93 lakh square feet, marking a 20% increase from the previous year.

Future Plans and Projections

Director Dhaval Ajmera outlined plans for the company:

• Wadala Land Parcel: Projected top-line sales of over ₹12,000.00 crore
• Boutique Office Space: Planned launch in H2FY26 with an estimated GDV of ₹1,800.00 crore
• Ultra-Luxury Residential Segment: Entry planned from FY27 with a project estimated to generate ₹5,700.00 crore in GDV

Financial Position

• Debt-to-Equity Ratio: Stands at 0.55x
• Project Pipeline: Worth ₹4,357.00 crore across seven projects

Q2 Financial Results

Despite strong presales growth, the company reported mixed results for Q2:

• Net Profit: Decreased to ₹304.00 million from ₹360.00 million year-over-year, a 15.56% decline
• EBITDA: Increased to ₹556.00 million from ₹543.00 million, showing a modest growth of 2.39%
• EBITDA Margin: Declined to 25.41% from 30.21% in the corresponding quarter of the previous year

Corporate Action: Share Split

The Board of Directors has approved a sub-division of the company's equity shares:

• Split Ratio: 5:1 (Five new shares for every one existing share)
• Current Face Value: ₹10.00 per share
• Post-Split Face Value: ₹2.00 per share
• Rationale: To enhance liquidity and accessibility for small retail investors

The share split is subject to shareholder and regulatory approvals and is expected to be completed within two months from the date of shareholders' approval.

Market Implications

The strong presales growth and future plans indicate potential for continued expansion. However, the mixed Q2 results and declining EBITDA margin suggest some challenges in maintaining profitability.

The announced share split may increase stock liquidity and attract a broader investor base, potentially impacting market activity in Ajmera Realty's stock.

As of the latest report, shares closed at ₹1,013.90, down 3.59%.