Hindustan Aeronautics has approved a 1:2 stock split for its equity shares. THis means that one share of face value of Rs 10 would be split into two equity shares of Rs 5. Record date for the stock split has been fixed as September 29, 2023, the company said in an exchange filing.

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Additionally, the board has also declared a final dividend of Rs 15 per share for financial year 2023. The company had earlier declared an interim dividend of Rs 20 per share in March this year. This takes the total dividend payout for the full year to Rs 35 per share.

Record date for the dividend payout will be intimated later, the company said.

The defense PSU earlier this month announced that its board meeting on June 27 will consider proposals for a split of equity shares and consider the recommendation of a final dividend for the financial year gone by.

Companies generally take the stock split route to boost the liquidity of the shares and increase investor participation.

Investors who hold the shares till the record date get the new shares in their demat accounts on the record date. The stock price is also adjusted as per the split ratio.

The last state-run firm to carry out a stock split was IRCTC, which divided its shares of face value of Rs 10 into five shares of face value of Rs 2.

Hindustan Aeronautics is in the business of design, development, manufacture, repair, overhaul, upgrade, and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.

HAL’s order book stood at Rs 82,000 crore as of March 2023. The company received fresh contracts of Rs 26,000 crore in financial year 2023 that included manufacturing contracts for six Do-228 Aircraft, 70 HTT -40, and PSLV launch vehicles.

Shares of Hindustan Aeronautics are trading little changed at Rs 3,698. The stock has been flat since the board meeting announcement on June 9 but has risen over 45 percent on a year-to-date basis.

First Published:Jun 27, 2023 11:19 AM IST