Shares of Rushil Decor Ltd. have underperformed in 2024, having declined close to 17%. However, the stock saw a sharp spike on Friday towards the close of trade after the board approved a split of equity shares.
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Rushil Decor will divide one share with a face value of ₹10 into ten shares of face value of ₹1.
The company will seek approval of its shareholders for the said stock split through a postal ballot, post which, it will determine the record date for the same.
This is the first stock split and the only one in Rushil Decor’s history. The company has previously only paid dividends to shareholders that has not exceeded ₹0.5 per share.
Generally, a stock split is considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.
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In December 2023, the company had allotted 41.3 lakh convertible warrants to 38 allottees on a preferential basis for an issue price of ₹297 per warrant. On May 9, the company had allotted 1.9 lakh equity shares to five allottees on conversion of the warrants. Two more allottees have paid the aggregate amount towards the subscription of the warrants, resulting in conversion of another 65,000 warrants into equity shares of the company.
Out of the two allottees, Sangeeta Venkatraman has been issued 30,000 shares, while Gaurav Verma has been issued the remaining 35,000.
Rushil Decor is a manufacturer of building products. It produces particle board, medium density fiberboard and decorative high pressure laminate sheets.
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Shares of Rushil Decor ended 3.2% higher on Friday, but has been flat over the last one month. As of closing on Friday, the stock had a market capitalisation of ₹838 crore.
