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The shares of Orissa Minerals Development Company Ltd sank by about 5 per cent as the meeting of the board of directors of the company held on August 11 to consider the bonus issue decided to engage a merchant banker to examine issues relating to capital restructuring by issue of bonus shares.
Investors were expecting that the board might finalise the bonus issue ratio.
However, the company's board approved the stock split at 10:1 ratio.
In a statement to the stock exchanges, the company said its board approved the engagement of merchant banker to examine the “various aspects relating to the capital restructuring” of the company by issue of bonus shares.
With regard to the proposal for merger of Bisra Stone Lime Company Ltd (BSLC) with itself, the board approved the engagement of merchant banker to study the possibility of different aspects of merger.
But the board approved the sub-division of shares of Rs 10 each into 10 equity shares of Rs 1 each.
On the BSE, OMDC shares fell by Rs 2,628.25 or 5 per cent to Rs 49,937.15 with 351 shares being traded.
The stock had gained more than 100 per cent in the past two months. From Rs 25,550 on June 4, it had touched a 52 week high of Rs 60,392.25 on August 7 on the BSE before losing some ground.
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