Chennai, Dec. 20
THE board of KCP Sugar and Industries Corporation Ltd has approved a proposal to split the face value of its shares to Re 1 from Rs 10 a share, according to information provided by the company to the stock exchanges.
The company will seek shareholders' approval at an extraordinary general meeting on January 18.
The authorised share capital is Rs 25 crore; the company has 2.5 crore shares which will go up to 25 crore shares.
Company officials told Business Line that the board's decision on Saturday is aimed at increasing the liquidity of the shares. Sugar stocks are going through a buoyant phase, which is expected to continue for some time. Today, KCP's shares were traded at over Rs 500 - not many investors can involve themselves at such levels - the stock split will help more investors participate in the rally, they said.
FII limit to 49%: With the buoyancy in sugar stocks, the company has hiked the limit of investments by FIIs to 49 per cent from 24 per cent of the paid-up capital. Shareholders approval will be sought during the EGM.
The trend in sugar stocks has attracted FII interest and the company is hiking the investment limit to accommodate them.
FIIs now hold about 2 per cent, officials said.
The company's stocks hit a high of Rs 503.20 on the NSE today and closed at Rs 491.20. The previous day's close was Rs 479.55.