NewsCorporate ActionsRM Drip & Sprinklers System Rectifies Stock Split Details, Confirms 1:10 Split RatioRM Drip & Sprinklers System Rectifies Stock Split Details, Confirms 1:10 Split Ratio
RM Drip & Sprinklers System Limited has revised its Board Meeting outcome, confirming a 1:10 stock split plan. The split will change the share structure from 1 equity share of ₹10 face value to 10 shares of ₹1 each, subject to shareholder approval. The company aims to make shares more affordable and enhance liquidity. The split is expected to be completed within a month of shareholder approval. Other board decisions include altering the Memorandum of Association, approving reports, and setting the Annual General Meeting for September 15, 2025.
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RM Drip & Sprinklers System Limited has issued a revised outcome of their Board Meeting held on August 22nd, 2025, to correct clerical errors in previously announced stock split details. The company has clarified and confirmed its plans for a 1:10 stock split, subject to shareholder approval.
Key Points of the Stock Split
- Split Ratio: 1:10
- Current Share Structure: 1 equity share with a face value of ₹10
- Proposed Share Structure: 10 equity shares with a face value of ₹1 each
- Approval Status: Subject to shareholder approval at the upcoming Annual General Meeting
Details of the Revision
The company submitted a revised outcome to the stock exchanges on August 23rd, 2025, addressing the clerical errors in the initial announcement. The correction specifically pertains to Point No. 1 of the original outcome, which contained typographical errors regarding the stock split details.
Rationale for the Stock Split
According to the LODR data, RM Drip & Sprinklers System Limited provided the following rationale for the stock split:
"The split of equity shares will make the shares more affordable and attractive to invest thereby encouraging greater participation of retail investors and will also enhance the liquidity of the Company's shares in the market."
Impact on Share Capital
The stock split, if approved, will affect the company's share capital structure as follows:
| Type of Capital | Pre-Split | Post-Split |
|---|---|---|
| Authorized Share Capital | 3,15,00,000 shares (₹31,50,00,000) |
31,50,00,000 shares (₹31,50,00,000) |
| Issued, Paid-up Share Capital | 2,49,80,000 shares (₹24,98,00,000) |
24,98,00,000 shares (₹24,98,00,000) |
Timeline and Implementation
- Expected Completion Time: Within 1 month from the date of approval by the company's shareholders
- Record Date: To be decided after obtaining shareholders' approval at the upcoming Annual General Meeting
Additional Board Meeting Outcomes
The Board of Directors also approved several other items during the meeting, including:
- Consequential alteration of the Capital Clause (Clause V) of the Memorandum of Association
- Draft Directors' Report for the financial year ended March 31, 2025
- Draft Notice for the 21st Annual General Meeting
- Setting the date for the 21st Annual General Meeting on September 15, 2025
- Fixing the Book Closure period from September 9 to September 15, 2025
- Appointment of M/s. Nuren Lodaya & Associates as the Secretarial Auditor for five consecutive financial years (2025-26 to 2029-30)
Investors and shareholders of RM Drip & Sprinklers System Limited should take note of these developments and await further announcements regarding the shareholder approval process and the record date for the proposed stock split.
