On Friday, Servotech Power Systems shares hit an upper circuit of 5 per cent during the first trading session on Friday, after the company announced the sub-division of its equity shares. Servotech has announced a subdivision split of its equity shares in 1 - 2 ratio to enhance liquidity of the company s equity shares and encourage wider participation in the stock market, via an exchange filing on Thursday. The company will split each share of the company with a value of Rs 2 each into two stocks with a value of Re 1 each.
The company will also change its capital clause in the MoA of the company for the same reason. The company will hold its extraordinary general meeting EGM of members of the company on June 22 to seek the approval of the shareholders for the same. The record date for the same filing is to be announced later this year.
Following the announcement, shares of Servotech Power Systems climbed to 93.05 points on Friday, bringing their total market capitalization to Rs 989.37 crore. The scrip had settled at Rs. 88.65 in the previous session on Thursday.
Servotech Power Systems shares have delivered multibagger returns to investors. From its 52-week lows of 11.4 on July 26th, 2022, the stock has risen more than 715 percent since its 52-week lows. In the last few months, the stock has gained 201 per cent, while it has gained 190 per cent in the year 2022 so far. Even in the last few months, the stock has surged about 63 per cent.
In February this year, the company had split its shares in a 1: 5 ratio. The shares with a face value of 10 each were divided into five equity shares with a face value of 2 each. The company announced in 2023 the second split, which was announced by the company.
Servotech Power Systems reported an increase of 363 per cent in the net profit for the quarter ended March. The company generated a revenue of Rs 115.3 crore in the fourth quarter of last year. The company reported an EBITDA of 9 crore, or 216 per cent, higher than the year ago period.
Servotech Power Systems, a leading manufacturer and distributor of EV charging solutions, solar products, and medical devices, is based in New Delhi. The company also offers and manufactures EV charging solutions, solar products, and medical devices.