BEML's Big Move: Stock Split in 1:2 Ratio, Set to Benefit Investors
BEML, a prominent public sector company in the defense sector, has announced a significant decision for its shareholders. The company’s Board of Directors has approved a stock split in the ratio of 1:2, meaning each existing share will be divided into two new shares.
Business News: Bharat Earth Movers Limited (BEML), a prominent public sector company in the defense sector, has announced a significant decision for its shareholders. The company’s Board of Directors has approved a stock split in the ratio of 1:2, meaning each existing share will be divided into two new shares.
Official Statement from the Company
In a filing to the stock exchanges, BEML stated that it has approved the split of its equity shares with a face value of ₹10 each into two equity shares of ₹5 each. However, the company has not yet announced the record date for the stock split, which will be revealed in due course.
Impact of the Stock Split on Investors
A stock split increases the number of shares in circulation without affecting the total value of an investor’s holdings. For instance:
- If an investor holds 10 shares priced at ₹100 each,
- After the split, they will own 20 shares,
- Each share will then be priced at approximately ₹50.
- The key objective behind the stock split is to enhance liquidity and make the stock more affordable for retail investors.
BEML’s Core Business
BEML, with a market capitalization of around ₹18,091 crore, operates under the Ministry of Defence and plays a crucial role in multiple sectors:
- Defence: Manufactures heavy vehicles and military equipment
- Railways & Metro: Produces coaches for trains and metro systems
- Mining & Construction: Supplies heavy machinery and industrial equipment
Stock Performance at a Glance
- Past 6 months: Over 20% positive return
- Past 1 year: Around 8% negative return
- Past 5 years: Stock has surged over 500%
- The company has shown robust long-term growth, and the stock split is likely to attract fresh investor interest.
BEML’s stock split decision is being seen as a strategic move to broaden its investor base. It could particularly benefit retail investors looking to enter the stock at a more affordable price point. Market analysts believe that this step could significantly improve the liquidity and trading volume of the stock. Investors are now keenly awaiting the record date announcement and observing how the market responds in the coming days.
