Shares of Steel Strips Wheels gained more than 2 percent earlier on Friday as the company’s board of directors approved the stock split plan, CNBC-TV18 reported. The stock, however, failed to hold on to its initial gains and fell 2 percent as profit-taking kicked in after confirmation of the news.

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The board of directors approved the sub-division of equity shares of the Company from the existing 1 equity share into 2 equity shares, subject to the approval of the company’s shareholders.

The stock split would augment liquidity in shares of the company and make it more affordable for the retail investors. Buying in the stock was supported by hefty volumes.

Steel strips board approves split of equity shares of the Company from the existing 1 (one) equity share into 2 (Two) equity shares pic.twitter.com/WwOPauYZi2

— CNBC-TV18 (@CNBCTV18Live) September 3, 2021

Axis Securities had recently said in a report that it expects Steel Strips Wheels to outperform the industry growth given its sticky relations with original equipment manufacturers across all automobile segments.

The company commands leadership with about 55 percent market share in the steel wheel rims space and around 20 percent in alloy wheels, the brokerage firm added.

The stock has given a total return of 298 percent in the last 1 year. On Friday, Steel Strips Wheels shares closed 1.3 percent lower at Rs 1,864.55.

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(Edited by : Ajay Vaishnav)

First Published:Sept 3, 2021 3:48 PM IST