Shares of Hindustan Aeronautics have delivered a return of 600 per cent in the last three years, while the stock has more than doubled in the last one year.
Amid the stock split buzz, shares of Hindustan Aeronautics surged 3 per cent to Rs 3,630 on Friday before giving up its gains and trading flat. |
Shares of Hindustan Aeronautics (HAL) surged another 3 per cent in Friday's trade to hit their new record highs as the company announced that its board of directors will meet later this month to consider the stock split proposals. The PSU counter has yielded multibagger returns to investors.
"A meeting of the Board of Directors of the company will be held on June 27 (Tuesday), to consider a proposal of sub-division of equity shares of the company," the company said in a filing on Thursday. Amid the stock split buzz, shares of Hindustan Aeronautics surged 3 per cent to Rs 3,630 on Friday before giving up its gains and trading flat. The company topped market capitalization of Rs 1.2 lakh crore during the session. The stock had settled at Rs 3,527.70 on Thursday.
A stock split or sub-division of equity shares is a corporate action where a company divides its shares in a specified ratio leading to a split of face value and increasing the number of shares. It is usually done to increase the liquidity of the stock in the market.
On the record date, investors who are holding the stock in their demat accounts are eligible to receive the new shares in accounts and the stock price will be adjusted according to the split ratio.
Shares of Hindustan Aeronautics have delivered a return of 600 per cent in the last three years, while the stock has more than doubled in the last one year. The multibagger PSU stock rose 40 per cent in the year 2023 so far.
Hindustan Aeronautics reported a 9 per cent fall in consolidated net profit at Rs 2,831 crore in the fourth quarter of FY23, from Rs 3,105 crore clocked in the same quarter last year. However, its revenue from operations jumped 8% year-on-year to Rs 12,494 crore for the quarter ended March. Bangalore-headquartered Hindustan Aeronautics is an Indian public sector aerospace and defence company, established in December 1940. It is one of the oldest and largest aerospace and defence manufacturers in the world.
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