SRINAGAR: In a move that will make the J&K Bank shares more affordable and pave way for its increased liquidity in the market the bank has approved for a 10:1 stock split.
The subdivision, according to the Board of Directors of the bank, will mean that one equity share of the bank having a face value of Rs 10 each would be split into ten equity shares of face value Re 1 each, a bank statement said.
The Board decision, however, is subject to sanction of shareholders at the upcoming Annual General Meeting of the bank scheduled in first week of August.
The move according to bank statement will be investor-friendly intended to help more investors — particularly small investors — to get into the stock investment mode.
Presently market liquidity of bank shares has been reduced drastically as Government of Jammu and Kashmir is holding 53.17 percent shares and Foreign Institutional Investors 28.77 percent leaving the remaining 18.06 percent to be held by other investors.
The low liquidity along with price hike are the two factors that are making the share unaffordable for the small retail investors like resident Individuals. The decision to sub-divide the share face value would increase the liquidity and will make stock more affordable particularly at the retail end. The decision will also help in creating investor wealth over a period of time.
Meanwhile, the bank shares on BSE Thursday closed at Rs 1,631.40 per share, up 0.46 per cent