Lawstreet Journal

Muthoot Finance to Consider Stock Split for Higher Liquidity of Shares

Lawstreet Journal 6 Jul 2020 9:55pm

Image courtesy: Lawstreet Journal Business Muthoot Finance to Consider Stock Split for Higher Liquidity of Shares

On Friday 3 July 2020, Muthoot Finance, in its regulatory filing, said that the company is planning to approve a proposal for subdivision/ stock split of equity shares of the company, subject to shareholders’ approval, in a Board meeting that is scheduled to be held on 18 July 2020.

The non-banking financing company (NBFC) will also seek approval of its shareholders for increasing the borrowing powers of the company. The proposal would be set up to increase that amount from existing Rs 50,000 crore to Rs 75,000 crore, it added.

Muthoot Finance Ltd. is an India based Finance Corporation that was incorporated as a private company on 14 March 1997. It is known as the world’s largest gold financing company. Apart from this, the company also deals in foreign exchange services, money transfers, wealth management services, travel, and tourism services, and sells gold coins at Muthoot Finance branches. It is headquartered in Kerala and operates from over 4,400 branches across India. The company also operates in the United States, the United Kingdom, and the United Arab Emirates. It falls under the umbrella entity of Muthoot Group and is listed under both National Stock Exchange and Bombay Stock Exchange.

In the stock split process, the company divides its existing shares into multiple shares in order to boost the liquidity thereof. It causes a decrease in the market price of individual shares; however, the market capitalization of the company remains constant. Generally, the practice is followed when the market price per share is very high… Continue Reading...

Tagged: Muthoot Finance  
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