The board of Dixon Technologies today gave a go-ahead to stock split under which the company will issue five shares for every one share held. The company informed BSE that the Board of Directors of the Company at its meeting held on February 02, 2021, intar alia, has considered and approved the following busineses:
- The sub-division/ stock split of existing 1 (one) Equity Share of face value of Rs. 10/- each fully paid up into 5 (Five) Equity Shares of Rs. 2/- each fully paid up, subject to shareholders approval. For the sub-division of shares, the record date shall be fixed after getting approval for sub-division from shareholders via postal ballot and will be communicated in due course, added Dixon.
The stock split will encourage wider participation of small investors and to enhance the liquidity of the equity shares at the stock market, added the company. In the quarter ended December 31, 2020, the companys revenues jumped 120% to Rs. 2,182 crore while net profit surged to Rs. 62 crore, a jump of 134% in comparison to the same period last year.
In Union Budget 2021, the government increased customs duty on mobile phone components such as PCBA, camera, connectors and back covers. This is positive for domestic manufacturers like Dixon Tech, Yes Securities said.
Dixon Technologies is engaged in providing design-focused solutions and also carries out manufacturing of products in consumer durables, lighting, home appliances mobile phones and security devices. In the past one year, the scrip of Dixon Technologies has surged close to 300 percent on expectations that governments production linked incentive (PLI) scheme will greatly benefit the company.
Story first published: Tuesday, February 2, 2021, 18:21 [IST]