Excelsior Correspondent
SRINAGAR, Aug 30: Face value (FV) of J&K Bank share will stand spilt after September 5 and will be traded at the National Stock Exchange of India Ltd. and The Bombay Stock Exchange Ltd. at Re 1 against existing FV of Rs 10 per share.
Shareholders of the Bank holding shares in the Dematerialized form in the records of National Securities Depository Limited and Central Depository Services (India) Limited, as at the close of working hours on September 5, shall be credited with the new shares of equivalent value by the Depositories concerned and available for trading after September 5.
In the case of shareholders holding shares in the physical form as on September 5, and who have opted to receive new shares of the Bank also in physical form, the bank shall be issuing new share certificates of the equivalent value.
Notably, pursuant to the decision taken by the Shareholders at 76th Annual General Meeting of the Bank, the Bank is in the process of completing formalities related to the sub division of each equity share of the face value of Rs. 10/- each into 10 equity shares of Re. 1/- each, which will be available for trading at the stock exchanges after September 5, 2014.
J&K Bank Chairman & CEO, Mushtaq Ahmad while listing needs to go for sub division of the shares said, “We intended to make the shares more affordable and pave way for its increased liquidity in the market. An investor-friendly move of the Bank is intended to help more investors – particularly small investors – to get into the stock investment mode.”
The chairman further stated that presently market liquidity of shares of the Bank has been reduced drastically because promoter along with foreign institutional investors hold 81.94% of total equity shares of the Bank and the remaining 18.06% is held by other Investors.
“The low liquidity with price hike, two factors together, made the Bank’s share unaffordable for the small retail investors like Resident Individuals. The decision of the shareholders to sub-divide the share face value would increase the liquidity and will make stock more affordable particularly at the retail end. The decision of the shareholders of the bank will also help in creating investor wealth over a period of time”, said the chairman.
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