Stock Split: This small-cap company splits shares in 5:1 ratio after delivering 817% return in 5 years

Servotech Share Split 2023: Shares of Servotech Power Systems hit the upper circuit of 5 per cent on NSE during Friday's session as they turned ex-split. According to an exchange filing by the company, each share of the Delhi-based company has been sub-divided into a ratio of 5:1.

The face value of each share of Servotech Power Systems was Rs 10. With the split taking into effect, the face value of each share has also been sub-divided into the same ratio. The new face value of each share is Rs 2.

It means that the company has sub-divided each share into 5.

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Also, the price of the shares of the company was adjusted in the same ratio on Friday. On Thursday, the stock had finished at Rs 220 apiece. On Friday, the price adjusted in the ratio of 5:1 to open at Rs 41.85. It finished at Rs 46.25. As many as 4,09,960 shares exchanged hands.

Stock split is a corporate action wherein a company's shares are divided, creating more shares and lowering the price. This results in increasing the total outstanding shares and liquidity.

Meanwhile, Servotech Power Systems has declared an interim dividend of Rs 0.20 per equity share for the current fiscal. The counter traded ex-dividend date on Friday, February 3.

The dividend amount will be credited to the bank accounts of eligible shareholders on/or around Saturday, February 18.

Shares of Servotech Power Systems have yielded multibagger return of 123 per cent in the past one year, resulting in wealth gain for investors. In the past 5 years, it has delivered a massive return of 817 per cent.

Servotech Power Systems manufactures and supplies solar, EV charger, LED, UVC and medical-grade products. The stocked finished at Rs 46.25 apiece on NSE after jumping 5.47 per cent. The company's market valuation was Rs 491 crore on Friday.

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