New Delhi:

Tata Coffee, Asia’s largest coffee plantation company, on Tuesday said its board has approved a proposal to split its equity shares from the existing face value of Rs. 10 per share to Rs. 1 per share.

However, the stock split is subject to the approval of company’s shareholders which is proposed to be obtained through postal ballot and e-voting, the company said in a filing to the BSE.

Stock split or sub-division of equity shares is usually done by the companies with the purpose of infusing liquidity by making shares affordable for retail investors who could not invest earlier because of the high stock price.

On November 17, the company had informed that board will consider the proposal of stock split of its equity shares.

Tata Coffee had reported a manifold increase in consolidated net profit at Rs. 32.36 crore for the second quarter that ended on September 30, on account of better performance by the company’s US subsidiary.

Shares in Tata Coffee, on Tuesday, ended at Rs. 977.25 apiece on BSE, up 0.62 per cent from the previous close.

source: http://www.profit.ndtv.com / NDTV Profit / Home> Market / Press Trust of India / November 25th, 2014