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Our Bureau

Split to improve market liquidity

Kochi , July 29

The board of directors of Geojit Financial Services Ltd has proposed to split the shares of the company in the ratio of 10:1. Accordingly, each share of the company with a face value of Rs 10 will be divided into 10 shares of Re 1 each, after complying with necessary formalities.

Public holding

Currently, the company has an equity capital of Rs 15.2 crore of which the public holding is 55 per cent. However, a large chunk of the public holding is being held by long-term investors. The proposed stock split is expected to improve market liquidity of the share, a press release issued here said.

Net profit at Rs 7 cr

Geojit Financial Services has recorded a profit before tax of Rs 10.30 crore on an income of Rs 32 crore. After providing Rs 3.39 crore for tax, the net profit stands at Rs 7 crore. Income for the quarter increased by 89 per cent and profit after tax went up by 101 per cent. Along with higher revenue from stock broking, other activities of the company also contributed to the improved bottom line.

The company with an all-India presence has 377 offices out which 24 branches were added during this quarter. With 31,000 clients added during the quarter Geojit now has 4.25 lakh clients.

Online trade

Geojit, the first to start Internet trading in the country, launched a new enhanced online trading system in January this year. With this initiative, the revenue from Internet trading now accounts for 10 per cent of the total revenue.

Geojit Commodities Ltd, subsidiary of GFSL in commodities trade, also improved its income by 186 per cent to Rs 4.6 crore and net profit by 168 per cent to Rs 89 lakh. Along with increase in commodity brokerage, income from insurance and technology initiatives improved substantially.

Barjeel Geojit Securities LLC, a joint venture in UAE has performed well during the quarter. The company, which declared 80 per cent dividend last year, has recorded 89 per cent increase in income and 63 per cent increase in net profit.

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Geojit board plans 10:1 stock split

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