Computer Age Management Services Approves 1:5 Stock Split

Computer Age Management Services Ltd (CAMS) has announced a significant corporate action through its board of directors. The registrar and transfer agent approved a stock split in the ratio of 1:5 during Friday's board meeting.

This decision will subdivide one existing equity share of face value ₹10 into five new equity shares of ₹2 each. The implementation remains subject to shareholder approval through a postal ballot process.

Rationale Behind the Stock Split

The company clarified the strategic objectives driving this corporate action. Primary aims include enhancing liquidity in the equity shares and improving affordability for retail investors.

This move intends to make shares more accessible to a broader investor base, potentially expanding shareholder diversity. The decision aligns with common corporate practices to increase retail participation in equity markets.

Impact on Share Capital Structure

The authorised share capital will remain unchanged at ₹51.25 crore despite the subdivision. However, the number of authorized shares will increase from 5,12,50,000 shares of ₹10 each to 25,62,50,000 shares of ₹2 each.

Similarly, the subscribed and paid-up share capital will maintain its current value of ₹49.53 crore. The total number of outstanding equity shares will rise from 4,95,30,127 to 24,76,50,635 shares.

Implementation Timeline and Process

The record date for determining shareholder eligibility will be announced following successful shareholder approval. The entire process is expected to conclude within two months from receiving shareholder consent.

This timeline remains subject to necessary statutory and regulatory clearances. The company will also modify its Memorandum of Association to reflect the revised face value.

Corporate Governance Aspects

The company confirmed uniform application of the subdivision to all shareholders since it has issued only one class of equity shares. This ensures equal treatment across all investor categories, maintaining corporate governance standards.

The postal ballot mechanism will provide all shareholders with democratic participation in the decision. The process underscores the company's commitment to transparent corporate actions.

Share Price

CAMS shares demonstrated positive momentum ahead of the stock split announcement. The stock closed at ₹3,865.00 on the BSE, gaining ₹33.90 or 0.88% for the day.

This price movement reflects market anticipation and investor sentiment regarding the corporate action. The stock split is expected to make shares more affordable at approximately one-fifth of the current price.

Read More: CAMS Launches UPI Offline Plus

Conclusion

CAMS's stock split decision represents a strategic move to enhance market participation and liquidity. The corporate action aims to make equity ownership more accessible to retail investors while maintaining overall capital structure.

Shareholder approval remains the final step before implementation, with completion expected within two months. This initiative reflects the company's focus on expanding its investor base and improving share marketability.

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