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HCL Tech opts for 2:1 stock split

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CIOL Bureau
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NEW DELHI: Indian software services firm HCL Technologies Ltd. is likely to offer a two-for-one stock split, the Press Trust of India (PTI) reported on Sunday.



The news agency said each of the company's shares, which currently have a face value of Rs 4, would be split into two shares of Rs 2.



"The board of directors is considering a 2:1 stock split to make the share more affordable for both the retail investor as well as employees of the company, leading to increased retail interest and higher liquidity," PTI quoted HCL Technologies chairman and chief executive officer Shiv Nadar as saying.



He said the proposal would be put up for shareholders' approval at the company's extraordinary general meeting scheduled to be held on September 4.



HCL Technologies ended at Rs 1,151.75 ($25.1) on Friday, down Rs 14.35 on the day.



Earlier this month, the firm reported a sharp increase in net profit for 1999-2000 (July-June) to Rs 2 billion from Rs 1.01 billion a year earlier.



(C) Reuters Limited 2000.

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