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Stock split 2025: Defence stock BEML declares stock sub-division in 1:2 ratio. Details here

Published on 21/07/2025 01:49 PM

Defence PSU stock BEML approved a stock split in its board meeting held on July 21, 2025 in a 1:2 ratio. The proposal, aimed at enhancing liquidity and increasing retail investor participation, involves splitting one equity share of face value ₹10 into two equity shares of face value ₹5 each, fully paid up.

This move, however, is subject to the approval of the company’s shareholders. Once approved, the company will announce a record date to determine the eligibility of shareholders for the split. The process of implementation is expected to take approximately two to three months from the date of shareholder approval.

According to the document shared by BEML, the issued, paid-up and subscribed share capital of the company currently stands at ₹41,64,45,000, comprising 4,16,44,500 equity shares of ₹10 each. Post-split, this will be divided into 8,32,89,000 equity shares of ₹5 each.

This sub-division is expected to improve the affordability of shares for smaller investors and boost trading volumes, thereby unlocking greater value for existing shareholders.

A stock split is a corporate action in which a company increases the number of its outstanding shares by dividing its existing shares into multiple ones, while simultaneously reducing the face value of each share proportionally. Although the number of shares increases, the overall market capitalization and value of a shareholder’s investment remain unchanged. Stock splits are typically done to improve liquidity and make shares more affordable for retail investors.

Over the past one year, the defense stock has declined by 5 percent. In July so far, it is down 1.7 percent, following a 5.4 percent gain in June and a sharp 33.7 percent rally in May. Prior to that, the stock had dipped 1.7 percent in April, surged 31 percent in March, crashed 36 percent in February, and slipped 5.5 percent in January.

It touched its 52-week high of ₹4,889.25 in July 2024 and recorded its 52-week low of ₹2,346.35 in March 2025.

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