AGI Infra Announces 1:2 Stock Split to Boost Liquidity

AGI Infra Ltd., one of the known real estate and construction companies, has announced a stock split in a 1:2 ratio, dividing each equity share with a face value of ₹10 into two shares with a face value of ₹5 each. This is aimed at boosting liquidity and encouraging retail participation, It was approved by the company’s board and awaits shareholder approval via a postal ballot.

Details of the Stock Split

• Record Date: Yet to be determined after shareholder approval.
• Authorised Share Capital: To increase from 1.5 crore shares to 3 crore shares post-split.
• Paid-Up Share Capital: To rise from 1.2 crore shares to 2.44 crore shares, while the total paid-up value remains unchanged at ₹12 crore.

This is the first-ever stock split announced by AGI Infra, which has also never issued bonus shares to its shareholders. The company believes the stock split will make its shares more affordable and accessible for retail investors.

Promoter & Shareholding Structure

As of September 30, 2024, the promoter and promoter group held a 72.94% stake, with:

• 55.3% held by the Hindu Undivided Family (HUF).
• 45.27% held by Sukhdev Singh Khinda.

The public holds the remaining 27.06% stake, and the company has only one class of equity shares.

Financials & Stock Performance

AGI Infra reported a 9.4% increase in revenue to ₹77.56 crore in Q2 FY25 compared to ₹70.9 crore in Q2 FY24. Net profit rose by 20.4% to ₹17.45 crore during the same period. AGI Infra’s shares are currently trading at ₹1,640.00, down around 0.50% today. The stock has surged 87% in 2024. 

AGI Infra’s decision to execute its first stock split shows its intent to increase market participation. While this could improve liquidity, what happens next will be interesting to watch.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.