Stock split: CESC approves sub-division of its equity shares

Such corporate action usually, even though not fundamentally important from the business growth perspective, is sentimentally positive for the stock prices.

The RP- Sanjiv Goenka Group’s Kolkata based flag ship company - The Calcutta Electric Supply Corporation or CESC has on Wednesday posted over 13 per cent jump in its consolidated net profit to Rs 429 crore in the March 2021 quarter. The company in its filing suggested that the profits were high mainly due to higher revenues. The consolidated net profit for the company in the quarter ended March 31,2020 stood at Rs 378 crore. 

In what may be an interesting announcement for the shareholders of the company, the board has considered and approved a proposal for sub-division of existing one Equity Share of nominal value of Rs 10/- each to be sub-divided into ten Equity Shares of nominal value of Rs 1/- each.The Company intends to improve the liquidity of its consolidation shares in the Stock Market by reducing the nominal value of the shares through the process of subdivision.  

Such corporate action usually, even though not fundamentally important from the business growth perspective, is sentimentally positive for the stock prices. 

CESC is a low PE (12.9) energy stocks with a dividend yield of 5.84 per cent. CESC made a fresh 52-week high on Wednesday by touching Rs 801 per share. The stock is up by 24.39 per cent on YTD basis while in one year the stock is up by 27.91 per cent.