new Delhi. The board of directors of Muthoot Finance, a non-banking financial company (NBFC), will meet on 18 July to consider the proposal for a share split. In a communication sent to the stock exchanges, the company said that a meeting of its board of directors has been called on 18 July. It will consider division of shares of the company. However, this requires shareholders approval.
Share splitting is a process in which a company splits its existing shares into multiple shares. This increases the liquidity of the shares. However, this increases the number of shares outstanding, but the total value of the shares remains the same before the split. This brings down the value of the business of the stock, allowing more investors to buy shares.
Apart from this, the Board of Directors will also seek shareholders approval to increase the loan rights of the company from Rs 50,000 crore to Rs 75,000 crore. Muthoot Finance shares were trading at Rs 1124.20 on the BSE, up 1.40 percent from the previous day's closing price.
This post was published on July 3, 2020 12:05 pm
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