SRS Finance in the limelight
An NBFC with a market cap of over Rs.100 crore, SRF Finance is doing well on the bourses today. Up 5% at Rs11.55, with a 52-week high of Rs.39 and low of Rs.10.52, the stock is the limelight.
The reason – the company had a Board meeting on 15th July to consider stock split – it was split Rs.10 face value to Re.1/share. It had already got all shareholders approvals through postal ballot. But in this Board meeting, probably happening for the first time, the Board decided to withdraw this stock split.
This decision was taken after taking into consideration the market price of the shares traded on BSE – it is already a penny stock, it would have only worsened. The company said that the decision to withdraw was mainly on account of a decline in the price of the shares and it would not be in the best interest of the Company to further go ahead with the process of sub-division.
The company is now seeking shareholder approval to reverse this stock split decision.
The market seems to have given this reversal a thumbs up. The company is really no great shakes – it had ended FY16 with a revenue of over Rs.5 crore and net profit of Rs.33 lakh. Not worth considering – it made it to this column only because it is buzzing and such a reversal does not happen often.