After the company had announced that the board would meet on October 27, 2016, to consider the stock split from the face value of Rs 10 each to lower denomination, JSW Steel share price rose almost 3% to trade at the intraday high of Rs. 1819.80 on the National Stock Exchange (NSE).
The company confirmed in a regulatory filing that a meeting of the board of directors had been summoned to be held on October 27, 2016, to consider sub-division of the equity shares of the company. The board will also mull over the un-audited standalone & consolidated financial results of the company for the quarter & half year ended September 30, 2016 (Q2).
Stock splits are carried out to make the company’s stocks more affordable to retail shareholders, thus widening the shareholder base, which in turn pumps up the liquidity for these stocks.
They are typically announced when a company’s stock price reaches a certain price level, which makes it unaffordable for smaller shareholders to buy them. The move does not alter anything fundamentally for the stock.
So far in 2016, JSW Steel share price surged 76% from Rs 1,033 as on December 31, 2015, as compared to 8% rise in the S&P BSE Sensex and 9.5% rise in Nifty50.
At 1:28 pm, 4.6 lakhs shares of JSW Steel has changed hands over the NSE counter while the stock traded at Rs. 1,810.70 with the rise of 2%.
Previously, Sajjan Jindal-led JSW Steel declared a better-than-expected net profit of Rs 1,109 crore in the June quarter. The value has been the highest-ever quarterly bottom line reported by the company, on the back of increased volumes and the significant reduction in cost even as realizations remained a little high. In the same period last year, the Mumbai-based company had announced a net profit of just about Rs 21 crore. JSW Steel is the top 500 stock identified by the Dynamic Levels for the quarter. For the levels of Support and resistance on the stock, visit JSW Steel share price forecast page of Dynamic Levels website.
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