United Van Der Horst Limited Proposes 5:1 Stock Split to Boost Liquidity
United Van Der Horst Limited's Board of Directors has approved a 5:1 stock split, subject to shareholder approval. The split will change the face value of shares from Rs. 5.00 to Re. 1.00 each. The company aims to enhance liquidity and attract small investors. The authorized share capital will remain at Rs. 7.00 crore, divided into 7 crore shares post-split. The proposal requires shareholder approval, amendment of the Memorandum of Association, and setting a record date for implementation.
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United Van Der Horst Limited (UVDHL), a company specializing in oil seals, hydraulic cylinders, V-belts, and transmissions, has announced a significant corporate action aimed at enhancing shareholder value and market accessibility.
Board Approval for Stock Split
The Board of Directors of United Van Der Horst Limited has approved a proposal to split the company's equity shares. The stock split, subject to shareholder approval, will subdivide each existing equity share with a face value of Rs. 5.00 into five equity shares with a face value of Re. 1.00 each, resulting in a 5:1 split ratio.
Current and Post-Split Share Structure
Currently, UVDHL has 1,37,87,400 fully paid-up equity shares and 2,600 partly paid-up shares. Post-split, the company's authorized share capital will remain unchanged at Rs. 7.00 crore, but it will be divided into 7 crore shares with a face value of Re. 1.00 each.
Rationale Behind the Split
The company stated that the primary objectives of this stock split are:
- To enhance the liquidity of UVDHL's equity shares in the stock market
- To make the shares more affordable, thereby encouraging participation from small investors
Procedural Steps and Timeline
The implementation of the stock split requires several key steps:
- Shareholder Approval: The proposal will be presented to shareholders for their consent.
- Memorandum of Association Amendment: The company will need to amend its Memorandum of Association to reflect the change in share structure.
- Record Date: A record date for the split will be announced after obtaining shareholder approval.
Management's Perspective
Mr. Jagmeet Singh Sabharwal, the Managing Director and Chairman of United Van Der Horst Limited, expressed optimism about the stock split during the company's recent Annual General Meeting. He emphasized that this move aligns with UVDHL's commitment to enhancing shareholder value and broadening its investor base.
Market Implications
Stock splits are often viewed positively by the market as they can lead to increased trading volume and potentially attract a wider range of investors. However, it's important to note that a stock split does not inherently change the company's market capitalization or the total value of an investor's holdings.
Conclusion
As United Van Der Horst Limited moves forward with this stock split proposal, investors and market watchers will be keen to observe its impact on the company's stock liquidity and overall market performance. The final implementation of the split remains contingent on shareholder approval and regulatory processes.
Historical Stock Returns for United Van Der Horst
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.73% | -6.55% | -27.11% | +6.89% | +11.37% | -53.54% |
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