Srestha Finvest Proposes 1:2 Stock Split, Seeks Shareholder Approval via Postal Ballot

Srestha Finvest Limited , a financial services company, has announced a significant corporate action that could potentially enhance the liquidity of its shares. The company has dispatched postal ballot notices to its shareholders, seeking approval for two key resolutions that could reshape its share structure.

Proposed Stock Split

The primary proposal put forth by Srestha Finvest is a stock split, which aims to subdivide each existing equity share. Under this proposal:

• Current share structure: Face value of Rs. 2.00 per equity share
• Proposed structure: Each share to be split into 2 equity shares with a face value of Re. 1.00 each

This 1:2 stock split, if approved, would effectively double the number of outstanding shares while halving their face value.

Memorandum of Association Amendment

In conjunction with the stock split, Srestha Finvest is also seeking shareholder approval to alter the Capital Clause of its Memorandum of Association. This amendment is necessary to reflect the change in the face value of the company's shares from Rs. 2.00 to Re. 1.00.

E-Voting Details

Shareholders will have the opportunity to cast their votes electronically on these resolutions. Key dates for the e-voting process are as follows:

• E-voting period: August 7, 2024 (9:00 AM) to September 5, 2024 (5:00 PM)
• Cut-off date for voter eligibility: August 2, 2024

Board Approval and Rationale

The Board of Directors of Srestha Finvest approved these proposals in their meeting held on July 31, 2024. The company cited two primary reasons for the proposed stock split:

1. Enhanced liquidity of the company's shares
2. Improved accessibility for small investors

Procedural Details

To ensure a smooth and transparent voting process, Srestha Finvest has made the following arrangements:

• E-voting facility: Provided by Central Depository Services (India) Limited
• Scrutinizer: M/s. S Praharaj & Associates appointed to oversee the voting process

The results of the postal ballot will be declared within two working days after the conclusion of the e-voting period.

This move by Srestha Finvest aligns with a broader trend in the financial markets where companies opt for stock splits to make their shares more accessible to a wider range of investors. Shareholders are advised to carefully review the postal ballot notice and cast their votes before the deadline.