Divide to rule

Companies are opting for stock splits in a buoyant market to attract retail participation

It is Splitsvilla of a different kind on the Street, which has seen the benchmark Sensex appreciate by 25% in CY14. Around 82 companies have announced stock splits in the current calendar year against 71 in 2013. In the current year, 56 splits were announced in the past five months. Of the overall 82 companies, 58 are small- and mid-cap stocks with a market capitalisation of less than ₹1,000 crore including Shivam Autotech and glass manufacturer La Opala. An indication that these companies are keen on keeping investor interest high in their stocks. The list also includes a host of private and public sector banks such as State Bank of India, Bank of Baroda, Axis Bank and ICICI Bank besides tobacco major, Godfrey Phillips and electricals manufacturer, Havells.