Stock Split: Premier Explosives to split one equity share into five, approves ₹400 crore fund raise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The board of Premier Explosives Ltd. has approved splitting one equity share of ₹10 into five equity shares of ₹2 apiece, it said in an exchange filing. This is the first ever stock split carried out by the company.

The company, which produces solid propellants for India’s missile programs, said in an exchange filing that it will determine the record date for the stock split in due course.

The stock split will be completed within two months from the date of approval of the members of the company.

Premier Explosives’ board has also approved raising of funds worth up to ₹400 crore through issuance of instruments or security including equity shares or eligible securities through one or more public or private offerings on a preferential basis or a QIP or a rights issue or any other eligible method.

Generally, a stock split is considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.

Premier Explosives Limited manufactures explosives and & accessories. These include Emulsion and Slurry explosives, LD cartridge explosives, Bulk Explosives, Small-dia non-permitted explosives, Permitted explosives, Cast Boosters, Pillow-packs for secondary blasting.

The company is India’s first private sector explosives manufacturer and supplies solid propellants for India’s prestigious missile programs like Akash, Astra, and LRSAM.

Shares of Premier Explosives are trading 3.3% higher at ₹2,087. The stock has surged 400% over the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow