CESC registers new high post 1:10 stock split, surges 10%
Shares of the electric utilities company traded with heavy volume, as it surpassed its previous all-time high registered almost 3 years ago.
After the 1:10 stock split went into effect on Friday, CESC shares soared 10% to Rs 96.75 on the BSE in intra-day trade. The company’s board of directors set September 17, 2021, as the record date for the stock split in the ratio of 1:10, which means that a Rs 10 equity share will be subdivided into ten equity shares with a face value of Rs 1 each.
The electric utilities company’s stock has surpassed its previous high of Rs 92.61 (adjusted for stock split) set on January 11, 2018.
The stock was 5.5 percent higher at Rs 93 on the BSE at 1:15 p.m., vs. a 0.23 percent rise on the S&P BSE Sensex. On the NSE and BSE, a total of 14.24 million equity shares were traded at the counter. Before the stock split, the counter used to see movements of less than 1 million shares on average.
Even though the demand outlook has improved, CESC is taking steps to mitigate the risks of low sales volume.