The boards of Maharashtra Seamless and Star Housing Finance Ltd will meet today to decide on bonus issue of equity shares and share split. Shares of Maharashtra Seamless were trading 0.76% lower at ₹863.50 today. But on a year to date basis, the stock is up nearly 70%. The company had announced a dividend of ₹5 in September this year. Star Housing Finance shares were today up 0.4% at ₹200.
Maharashtra Seamless Ltd (MSL) is engaged in manufacturing of Seamless and ERW steel pipes & tubes, incorporated during year 1988. MSL is a flagship company of D P Jindal Group.
“We have to inform that the Board of Directors at its meeting scheduled to be held on Monday, 17th October, 2022 will also discuss and consider inter-alia, a) issue of bonus shares, and b) sub division/stock split of the company’s existing equity shares of ₹5 each,” the company announced in an exchange filing on the BSE on Wednesday.
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Meanwhile, bonus shares are fully paid additional shares issued by a company to its existing shareholders.
Maharashtra Seamless had earlier informed that it has made a voluntary prepayment of long term loan outstanding of Rs. 315 crores approx. to HDFC Bank Limited on 10th October, 2022 from internal accruals of the Company.
“This long term loan was availed from HDFC Bank Limited in 2019 for part fund the acquisition of United Seamless Tubulaar Private Limited. The aforesaid loan was repayable over a period of 10 years,” the company said.
Star Housing Finance had issued bonus shares in 1:1 in 2017. Year to date, Star Housing Finance shares are up over 130%.
In a statement, the housing finance company had said: “Star Housing Finance Ltd has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 17/10/2022 ,inter alia, to consider and approve 1. Un-audited Financial Results of the Company for the Quarter and Half Year ended 30th September, 2022. 2. Proposal for issue of fully-paid Bonus Equity Shares to the Shareholders of the Company and/or 3. Proposal for Sub-division of Equity Shares of the Company”
Recently, Star Housing Finance had informed shareholders that it “has sanctioned Loan Facility of Rs. 10,00,00,000/-(Rupees Ten Crore only) to Star Housing Finance Limited under the NHB additional Refinance Facility.”
Meanwhile, Star Housing Finance shares have been put under the additional surveillance measure framework.
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