‘Transcorp International Ltd.’ split its equity stock and fixed 16 May 2016 as the record date for the purpose of splitting the face value of the shares from Rs. 10 to Rs. 2 per share. The Board of Directors of the company had approved the sub-division of its equity shares in a meeting held on 14 March 2016.
Post split, the number of shares will increase to 2,54,26,195 shares of Rs. 2 each from 50,85,239 shares of Rs. 10 each. The outstanding paid-up capital of the company is Rs. 50.8 million. The paid-up capital of the company remains the same in case of stock split.
Stock split is a type of corporate action that increases the number of outstanding shares of a company. It involves splitting the face value of the shares of a company. Stock split does not affect the overall capital of the company. Thus, where the overall value of the capital remains the same, the per share value declines in proportion to the decline in the face value of the shares. From an investor point of view, the total value of the shares held remains the same, though, the per share value decreases against an increase in the number of shares post split.
When a company splits its stock, it has an impact on the Earnings Per Share (EPS) and the Price-Earnings Ratio (P/E) of the company. The EPS of ‘Transcorp International Ltd.’ decreased to Rs. 0.59 from Rs. 2.95 as on 13 May 2016. The P/E ratio of the company, according to the BSE as on 13 May 2016 was 25.34 times.
‘Transcorp International Ltd.’ is listed on the Bombay Stock Exchange (BSE). It was incorporated in the year 1994. In Prowess, it belongs to the industry group and main product/service group of ‘Other miscellaneous services’ and ‘Commission agents services’, respectively.
Information about stock split by companies can be obtained in Prowess using either the ‘Changes in Equity Capital’ report in the report viewer or by executing a query in the ‘Changes in Capital’ query trigger. These resources also provide additional information pertaining to the stock split such as capital issue type, security type, capital issue date etc.