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Lux Industries Ltd announces 5-for-1 stock split

| | Jun 06, 2016, at 11:47 pm
Kolkata/Mumbai, June 6 (IBNS): Lux Industries Ltd with a current market capitalization at Rs. 1,721.75 crores, manufacturing more than 100 products across 12 major brands comprising a complete range of innerwear for men, women, and children, today announced a stock split to be effective, of the face value of Rs. 10 each into Rs. 2 each per equity share in a 5-for-1 stock split, in compliance with applicable provisions of the Companies Act, and other applicable provisions.

Speaking on this occasion Ashok Kumar Todi, Chairman, Lux Industries Ltd. said, “This year we have witnessed a turnover of  940.86 crores which ensured a top line growth by 3.51%. With this stock split we are looking at a renewed investor sentiment and achieve greater liquidity for the stock. Considering that Lux Industries Ltd. has witnessed northward growth in the hosiery and innerwear space, through its innovations by creating benchmark in terms of comfort and quality, we believe this is the right time to give more investors that opportunity to be a part of the success story of Lux Industries.”

The Chairman, further added, that the stock split will reduce per unit price and increase deliverable quantity, thereby enhancing buying capacity coupled with the liquidity. This will strengthen share price and increase volumes, both in number as well as value. However, this will not affect the rights of the shareholders or the taxability.

Upon the completion of the ex-date for stock split is effective from June 6 Lux Industries Ltd. will have 252.530 lacs shares of common stock outstanding of Rs. 2 each against existing 50.506 lacs shares of Rs. 10 each. During the span of 52 weeks the stock had hit a record high of Rs. 4,148 on Dec 17, 2015 on NSE.

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