Steel Strips Wheels Gains After Shareholders Approve Stock Split Plan

Shares of the Chandigarh-based wheel rim maker Steel Strips Wheels Limited (SSWL) rose as much as 5 per cent to hit an intraday high of Rs 1,884 after the company informed exchanges that the shareholders of the company approved stock split proposal in ratio of 1:2. Shareholders of the company on its 35th Annual General Meeting approved sub-division of equity shares of the company from the existing one equity share of face value of Rs 10 each into two equity shares of face value of Rs 5 each.

The company is yet announce the record date for the purpose of sub-division of equity shares shall be intimated in due course.

The company said that the rationale behind the sub-division of equity shares was to provide enhanced liquidity to the company's shares in stock market and to encourage the participation of small investors by making equity shares of the company affordable.

Among other decisions at the shareholders meeting, Steel Strips Wheels shareholders approved appointment of Siddharth Bansal as non-executive independent director of the company to hold office for a period commencing from November 9, 2020 to September 30, 2025, continuation of directorship of Rajinder Kumar Garg as chairman and non-executive director of the company and revision in the remuneration of Dheeraj Garg, managing director of the company.

Steel Strips Wheels' board met on September 3 to consider splitting the stock.

As of 1:46 pm, Steel Strips Wheels shares traded 2.56 per cent higher at Rs 1,841, outperforming the Sensex which was up 1 per cent.