HAL gets board approval for 1:2 stock split; proposes Rs 15 dividend

27 Jun 2023 , 03:11 PM

Hindustan Aeronautics Limited informed that the board of directors approved a share split of 1:2 on Tuesday.

In a filing, the company announced that its Board has proposed a stock split, whereby each existing fully paid-up equity share with a face value of Rs 10 will be divided into two equity shares with a face value of Rs 5 each.

In addition to the stock split, the company will pay a final dividend of Rs 15 to shareholders for the fiscal year 2022-23.

The company has set September 29 as the record date for determining shareholder eligibility for the proposed share split.

A stock split is typically performed to increase the market liquidity of a stock. Investors who held the stock until the record date will receive the new shares in their de-mat accounts, and the stock price will be adjusted in accordance with the split ratio.

Meanwhile, the dividend will be distributed to shareholders within 30 days of its approval by shareholders. The record date for the aforementioned dividend will be announced in due course.

HAL shares will trade ex-dividend on the record date or the day before. 

At around 3.05 PM, Hindustan Aeronautics was trading 1.19% lower at Rs 3,657 apiece, against the previous close of Rs 3,701.05 on NSE. The counter touched an intraday high and low of Rs 3,770 and Rs 3,653.20 respectively.

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