BEML Approves 1:2 Stock Split to Attract Retail
Investors and Boost Liquidity
In a strategic move to enhance stock liquidity
and affordability, defence public sector
company BEML Ltd has approved a 1:2
stock split, reducing the face value of its shares from ₹10 to ₹5
each. This corporate action was approved in the board meeting held on July 21, 2025, and is now awaiting
shareholder approval.
Key Highlights:
| Particulars | Details |
|---|---|
| Stock Split Ratio | 1:2 |
| Face Value Before Split | ₹10 |
| Face Value After Split | ₹5 |
| Board Approval Date | July 21, 2025 |
| Record Date | To be announced post shareholder approval |
| Estimated Implementation | Within 2–3 months after approval |
Why BEML Is Splitting Its Shares
A stock
split increases the number of outstanding shares while reducing the
face value, without affecting the total market value. This makes shares more
accessible to smaller investors and improves market liquidity.
BEML management believes this 1:2 split
will:
·
Increase affordability for retail investors
·
Boost trading volumes on the exchanges
·
Unlock shareholder value by improving
participation
According to the filing, BEML current paid-up share capital is ₹41.64 crore, consisting of 4.16 crore shares of ₹10 each. Post-split, it will convert to 8.32 crore shares of ₹5 each.
Stock Price Trend: A Volatile Ride
BEML has shown a roller-coaster performance over the past year. Here's a
snapshot of its monthly performance:
| 🗓️ Month | 📊 Price Movement |
|---|---|
| July 2025 (MTD) | ↓ 1.7% |
| June 2025 | ↑ 5.4% |
| May 2025 | ↑ 33.7% |
| April 2025 | ↓ 1.7% |
| March 2025 | ↑ 31% |
| February 2025 | ↓ 36% |
| January 2025 | ↓ 5.5% |
It touched its 52-week high of ₹4,889.25 in July 2024 and a 52-week low of ₹2,346.35 in March 2025. The stock has lost around 5% in the last year, despite multiple recovery phases.
What Is a Stock Split? (Simple Explanation)
A stock split is when a company divides its existing shares into more
units to reduce the trading price of each share. If you had 1 share of ₹10
before a 1:2 split, you’ll now have 2 shares of ₹5 each.
·
Total investment value stays the same.
·
Share price becomes more affordable.
· Often used to attract small and retail investors.
Expert View: What Should Investors Do?
While the stock split does not increase your
investment’s intrinsic value, it can lead
to better trading activity, especially among retail investors.
Stock splits are usually seen as a positive signal by the market:
·
It indicates confidence in future performance.
·
It often attracts a wider investor base.
·
But keep in mind: it doesn’t automatically mean
gains.
Note: The stock split plan is subject to shareholder approval. Investors should wait for the record date announcement before making any decisions.
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·
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·
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·
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·
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·
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Disclaimer:
The above content is for informational purposes only and should not be considered as financial advice. Always consult a certified financial advisor before investing. The views expressed are based on public market data and company filings.
