Servotech Power Systems Shares to Ex-Split and Dividend. Shares of Delhi-based small-cap company hit upper circuit during Friday’s trading session.
Servotech’s board had earlier declared a split of shares in the ratio of 1:5 and payment of an interim dividend of Rs 0.20 per equity share. This means that the board had approved the division of each share into 5.
According to an exchange filing by the company, the new face value after the split is now Rs 2.
The rationale behind the split is to increase the liquidity in the market, widen the shareholder base and make the shares more affordable for small investors.
When a company announces a split of its shares, the market value is adjusted proportionately. The stock had closed at Rs 220 on Thursday. The stock opened at Rs 41.85 on the NSE on Friday after the adjusted split. On Friday, it closed over 5 per cent higher at Rs 46.25 over the counter on the NSE.
Shares of Servotech Power Systems were also trading on the ex-dividend date on Friday. As per the filing, the dividend amount will be deposited directly into the bank accounts of eligible shareholders on or around Saturday, February 18.
Shares of Servotech Power Systems have given multi-bagger returns of 123% in last one year and 817% in 5 years.
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