Hindustan Foods Limited shares rose more than 16%, reaching a 52-week high of Rs 479 each on the BSE in early trade Thursday as the company began trading ex-split, a day ahead of the record date for the stock split in the ratio of 1:5. The company said earlier this month that Friday, July 22, 2022, will serve as the record date for its share subdivision.

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In May, the company announced that its board had “approved the proposal of Sub-Division/ Split of existing 1 (One) Equity Share of the face value of Rs. 10/- (Rupees Ten Only) each fully paid up into 5 (Five) Equity Shares of Rs. 2/- (Rupees Two Only) each fully paid up, subject to the approval of the company’s members and other authorities if required.”

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Hindustan Foods stated that the stock split decision is intended to promote greater involvement of retail investors by making equity shares more accessible to them, as well as to improve the liquidity of the company’s equity shares in the stock markets.

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The number of shares outstanding rises as a result of a stock split because the existing shareholders receive more shares. A stock split lowers the market price of individual shares but has no effect on the company’s market capitalisation.

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The company reported a net profit of Rs 12 crore for the quarter ending March 2022, or Q4FY22, compared to Rs 12.9 crore in the previous fiscal’s corresponding quarter. It recorded a total income of Rs 582.5 crore for the quarter, up from Rs 492 crore in the year-ago quarter.

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Hindustan Foods is an FMCG contract manufacturer. Food & beverages, beauty & personal care, leather, sports footwear & accessories, home care, health & wellness, and pest control are among its product categories.