Apollo Micro Systems has announced a split of the company’s shares. The Board of Directors in its meeting held on 21st January approved the sub-division of equity shares of face value of Rs 10 each. Apollo Micro Systems is an aerospace and defense company.
According to the exchange filing by the company, the board has approved the split in the ratio of 10:1. This means that each share will be divided into 10 shares. As a result, the total outstanding shares of the company will increase in the secondary market and the market value will be adjusted proportionately to the split.
After the split comes into effect, the face value of each share of Apollo Micro Systems will be reduced to Re 1 per share.
“The Board has approved the sub-division/splitting of Equity Shares of face value of Rs 10 each into 10 Equity Shares of Re 1 each, as may be, subject to the approval of the members of the Company and regulatory/statutory approvals. ” Filing reading.
According to the filing, the record date for the split of equity shares will be decided by the board and communicated in due course. The exercise is expected to be completed within 3 months from the date of shareholders’ approval.
The rationale behind the split is to increase liquidity in the capital markets, widen the shareholder base and make the shares more affordable for small investors.
In another related development, the company said it has received provisional allotment of land by the Telangana State Industrial Infrastructure Corporation Limited for setting up an electronics industry on Out Right Sale (ORS) basis in Rangareddy district of Telangana.
Apollo Micro Systems shares have given multi-bagger returns of 224% in last 6 months while 148% returns in last 1 year. Shares of the small-cap company closed at Rs 360 on the NSE on Friday. It made an intraday high of Rs 368 – also its 52-week high.
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