JBM Auto at new high ahead of board meet for stock split, up 87% in 1 month
Shares of JBM Auto continued their northward movement, and rallied 11 per cent to Rs 1,147.95 on the BSE in Monday’s early morning deals ahead of the company's board meeting to consider stock split from face value of Rs 5 to a lower denomination.
JBM Auto on November 19, 2021 said that the board of directors of the company is scheduled to meet on Wednesday, December 8, 2021 to consider and approve the proposal of sub-division of company's equity shares having face value of Rs 5 each and matters related thereto. Since then, the stock has surged 29 per cent from level of Rs 891 on November 18.
A stock split is generally undertaken to make the stock more affordable to small retail investors and increase liquidity. It refers to splitting the face value of shares, in which the number of shares of the company increases but the m-cap remains the same. Existing shares split, but the underlying value remains unchanged. As the number of shares increases, the price per share goes down.
Meanwhile, in past one month, the stock of auto parts & equipment company has zoomed 87 per cent, as compared to 4 per cent decline in the S&P BSE Sensex.
JBM Auto is engaged into the business of sheet metal components, tools & dies. The company is also an Original Equipment Manufacturer (OEM) as it is engaged in the production of passenger buses.
JBM Auto became the first company in India to be ready with a BS-VI compliant 12m LF CNG bus for public transportation and Delhi became the first city in the country to add the new-age vehicles to its bus fleet. The product has been powered with the new engine which has larger capacity and distinct advantages. For instance, the vehicle can be run at lower RPMs with requisite torque output leading to higher fuel economy.
At 09:33 am; JBM Auto was trading nearly 8 per cent higher at Rs 1,116 on the BSE, against 0.35 per cent fall in the S&P BSE Sensex. A combined 298,000 equity shares had changed hands on the counter on the NSE and BSE.