Motisons Jewellers has recently announced a significant corporate decision that will impact its shareholders. The company’s board has approved a proposal to sub-divide a single equity share with a nominal value of ₹10 into ten separate shares, each with a face value of just Re 1. This move aims to enhance liquidity and make the shares more accessible to a wider range of investors.
Details of the Share Sub-Division
In a formal exchange filing, Motisons Jewellers outlined the specifics of the sub-division. The approved plan is to split one fully paid-up equity share valued at ₹10 into ten fully paid-up equity shares of Re 1 each. This strategic decision is contingent upon obtaining the necessary approvals from shareholders and other regulatory bodies.
Record Date Set for November 9, 2024
The board has also established November 9, 2024, as the record date for this corporate action. This date will determine the eligibility of shareholders who will receive the new shares post-sub-division. The notification highlights compliance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Benefits of Share Sub-Division
The rationale behind the share sub-division includes improving market liquidity and making the stock more affordable for retail investors. By lowering the price per share, the company hopes to attract a broader investor base, which could positively influence trading volumes and overall market interest.
Amendments to Memorandum of Association
In conjunction with the share sub-division, the board has also approved amendments to the capital clause in the company’s Memorandum of Association. This adjustment will reflect the changes in share structure, ensuring that the company’s documentation is in alignment with its new capital arrangements. However, these amendments are also subject to shareholder approval.
Previous Fundraising Plans
This decision follows the board’s earlier approval of a ₹170 crore fundraising initiative through a preferential issue, with an issue price set at ₹170 per share. The board’s actions indicate a proactive approach to capital management and growth, positioning Motisons Jewellers for future expansion and financial stability.
Motisons Jewellers’ decision to sub-divide its equity shares reflects a strategic effort to enhance shareholder value and increase market participation. With the record date set for November 9, 2024, shareholders should stay informed about this development and consider the potential implications for their investments. As the company continues to make strides in its corporate strategy, investors will be watching closely for further updates and opportunities.