Sapphire Foods India's share price witnessed a surge of over 6 per cent during the morning trade session Thursday after the company announced that its board has approved a stock split.
According to a regulatory filing, the board meeting held on Wednesday finalised the decision to split each existing equity share, which currently has a face value of Rs 10 fully paid up, into five equity shares with a face value of Rs 2 each fully paid up.
At 11:35 am, the shares of the company were trading at Rs 1,597 price level, up by 2.46 per cent on the National Stock Exchange (NSE).
The company operates KFC and Pizza Hut outlets across the country and is one of the largest franchisees of Yum! Brands Inc. in the subcontinent.
Sapphire Foods also announced that it will inform shareholders of the date for its 15th Annual General Meeting at a later time. "The date of the 15th Annual General Meeting of the Company and Record Date for the purpose of subdivision/split of existing equity shares of the Company will be intimated in due course and at an opportune time," the company said.
As per the regulatory filing, the rationale behind the stock split is to enhance the liquidity of its shares in the stock market by increasing its shareholder base and making the shares more accessible to retail investors.
The expected time of completion is three months following the date of approval of the members of the company (subject to necessary formalities).
On a year-to-date basis, the shares of the company have delivered a return of more than 13 per cent on the NSE.
