Thatta Cement Company Limited (THCCL) has informed the exchange that its Board of Directors (BoD) has proposed the sub-division of equity shares subject to shareholder approval.
“The board has recommended the sub-division of the company’s ordinary shares by reducing the face value from Rs10 to Rs2 per share. This implies a stock split in the ratio of 5 shares for every 1 share held,” read the notice released to the bourse on Friday.
A subdivision of shares, also known as a share split, is a corporate action that increases the number of shares while decreasing the share price. The overall value of the company and the value of each shareholder’s investment remain unchanged.
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THCCL, in its notice to the bourse, shared that the primary objective of the stock split is to make the company’s shares more accessible and affordable for small and retail investors, thereby broadening the investor base.
“The move is also expected to enhance market liquidity through increased trading volumes.
“Furthermore, this decision signifies the company’s confidence in its long-term growth trajectory, supported by a notable rise in its share price over the past year.
“Overall, the initiative aims to encourage greater investor participation and reinforce Thatta Cement’s presence in the equity market,” it added.
The cement maker informed that once approved at the Extraordinary General Meeting (EOGM), the company’s existing subscribed and paid-up capital, currently comprising 99,718,125 ordinary shares of Rs10 each, will be split into 498,590,625 ordinary shares of Rs2 each.
“As a result, eligible shareholders will receive 5 ordinary shares for every 1 share held, at the date of determination,” it concluded.
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