Canara Bank's Equity Shares To Be Split Into FiveCanara Bank, announced the splitting of its equity shares. The decision was approved by the bank’s Board of Directors after the Board Meeting held on February 26, 2024. The split ratio is 1 :5; each equity share of the bank would now be split/subdivided into five, the bank said.
In a disclosure at the stock exchange, Canara Bank said that each equity share would be split into five equity shares, i.e., an equity share or RS. 10, would be split into five shares, each holding a face value of Rs. 2. “This is to inform the Stock Exchanges that the Board of Directors of the Bank at its meeting held today, i.e Monday, 26th February 2024, inter alia, approved Sub-division/ split of every one equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up, into 5 (five) equity shares of face value of Rs. 2 /- (Rupee two only) each, fully paid-up, subject to approval of the Reserve Bank of India,” the disclosure said.
The decision to split the shares was taken to improve the liquidity of the shares of the bank, and also to expand the retail investor base of the bank. The new ratio would make the shares of the bank become affordable for the retail investors.
The expected time for completion of the sub-division/ split is two to three months, “2 to 3 months from intimation of date of Board Meeting (i.e 07-02-2024) to Stock Exchanges, considering the time taken for receiving RBI’s approval,” the filing said. The class of shares which have been sub-divided are equity shares. This information is available in the bank’s website, the filing said. It also said that the trading window for the shares/securities would reopen on Thursday, February 29.
During the closing at the market, the shares of the bank stood 1.47 low at 571.90 at the BSE. The face value of the share, which is Rs. 10 now, would become Rs. 2 after the sub-division. The results of the financial performance of the bank for December 2023, which stood at 3,659 (in Cr.) has shown an improvement over the earlier quarter, which stood at 3606 (in Cr.) for September 2023. Canara Bank is a Government of India undertaking, found at Mangalore in the year 1906 and now based in Bengaluru. In 1969, the bank was nationalized and in 2006, the bank completed hundred years of existence.