Kolkata, Sep 17 (PTI) Shares of power utility CESC Ltd on Friday rose by nearly 4.5 per cent after the stock split came into effect.
The scrip ended the day at Rs 92.10, up by 4.42 per cent on the BSE. During the day, it surged to Rs 96.75.
The RP Sanjiv Goenka group flagship company split its shares in 1:10 ratio. An equity share with the face value of Rs 10 was sub-divided into 10 shares with a face value of Re 1 each.
Based on split-adjusted price, shares of CESC gained nearly 4.5 per cent as investors' demand remained strong for the energy stock.
On the rationale behind the stock split, the company said it intends to improve the liquidity of its shares in the stock market by reducing the nominal value of the scrip through the process of sub-division.
CESC is engaged in the business of distribution of electricity in its licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal.